Firehose

Five major US tech giants, including Alphabet, Microsoft, Amazon, Meta, and Oracle, are hiding an estimated $1.65 trillion in debt off their balance sheets, with Meta alone having amassed around $420 billion in such debt, highlighting the precarious state of the AI industry's investment in AI. This debt is being concealed through special purpose vehicles, such as legally distinct subsidiaries, to make financial reporting appear healthier than it actually is. Experts warn of an AI bubble, citing the enormous gap between company valuations and profits. AI summary

US tech giants Meta, Oracle, and others have accumulated an estimated $1.65 trillion in hidden debt through opaque AI funding, which has swelled eightfold in roughly four years, surpassing actual debt and complicating investors' risk assessments. This surge in debt is largely driven by AI investments, which have ballooned to a significant portion of the companies' liabilities. As a result, investors are finding it increasingly difficult to accurately assess the risks associated with these companies. AI summary