AI Companies Are Trying to Hide a Staggering Amount of Debt ---- - an hour ago | 50 points | 20 comments - URL: https://futurism.com/artificial-intelligence/ai-companies-hide-debt-off-balance-sheet - Discussions: https://news.ycombinator.com/item?id=49020999 - Summary: A Nikkei Asia investigation found five major US tech giants—Alphabet, Microsoft, Amazon, Meta, and Oracle—are concealing an estimated $1.65 trillion in off-balance-sheet debt, surpassing their $1.35 trillion in officially reported obligations. Meta alone holds approximately $420 billion in hidden debt. The companies allegedly use special purpose vehicles and subsidiaries, reminiscent of Enron's accounting practices, to mask the true cost of massive AI data center investments. Critics warn this obfuscation indicates severe financial strain as the industry pours billions into infrastructure amid an AI bubble. Experts highlight a growing disconnect between soaring valuations and weak profits. Firms are also issuing new shares to raise capital, risking equity dilution and diminished investor confidence. Analysts caution that if AI demand fails to justify this spending spree or the bubble bursts, these hidden liabilities could leave the companies dangerously exposed.