Tuesday, October 13, 2026

Shadow financing: Hidden debt behind AI deployment has reached US$1.35 trillion

These liabilities are estimated for five companies: Meta, Alphabet, Amazon, Microsoft and Oracle. As data centers become operational, these liabilities move onto the balance sheet and become visible. The risk is that the spending fails to generate sufficient profits, potentially leading to massive write-downs.

The race to develop artificial intelligence has led Alphabet, Microsoft, Amazon, Meta and Oracle to accumulate US$1.65 trillion in off-balance-sheet debt, according to a report by Nikkei Asia. This figure exceeds the US$1.35 trillion in debt recorded on their balance sheets and reflects financing for critical infrastructure such as data centers and GPU supplies.

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