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Big Tech’s Hidden AI Debt Crisis | US News
Big Tech is pouring trillions into AI data centers—commitments totaling $1.65 trillion, more than their current debt—while Wall Street braces for fallout. Hidden leases and supply deals, allowed under accounting rules, could turn into massive losses if AI demand falters or projects get canceled. Dubbed “shadow borrowing,” this strategy relies on private credit and debt, not cash flow, as companies fund each other in a murky, circular investment web. The Bank for International Settlements warns the AI boom’s stability hinges on unrealistically high earnings. Oracle’s 60% stock plunge and…
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