AI Giants Hiding $1.65T in Off-Balance-Sheet Debt
Original: AI Companies Are Trying to Hide a Staggering Amount of Debt
Why This Matters
Hidden debt at this scale raises systemic financial risk questions across the entire AI infrastructure buildout.
A Nikkei Asia investigation found that five US tech giants — Alphabet, Microsoft, Amazon, Meta, and Oracle — are concealing an estimated $1.65 trillion in off-balance-sheet debt, exceeding their officially reported $1.35 trillion. Meta alone accounts for approximately $420 billion of that hidden figure.
According to a Nikkei Asia investigation, five major US tech companies — Alphabet, Microsoft, Amazon, Meta, and Oracle — are carrying an estimated $1.65 trillion in debt that does not appear on their official balance sheets. This surpasses the $1.35 trillion in debt the same companies formally reported for the most recent quarter. Meta leads the group with roughly $420 billion in off-balance-sheet liabilities.
The firms are reportedly using special purpose vehicles and legally distinct subsidiaries — arrangements similar to those that brought down energy company Enron in 2001 — to make financial statements appear healthier than they may actually be. Technical accounting consultant Tom Selling told Bloomberg: "The accounting treatment itself is in fashion. But what if one of these companies was a house of cards and was propping itself up with this accounting treatment? To me, that's the risk."
The debt is being accumulated largely to fund large-scale data center construction needed to support increasingly resource-intensive AI models. Companies are also issuing new shares to raise capital, raising concerns about equity dilution and investor confidence. Four of the five companies are scheduled to report Q2 earnings in the coming weeks.