Moody's says Alphabet, Microsoft, Amazon, Meta and Oracle have amassed $1.65 trillion in AI-related obligations, underscoring concerns that aggressive data-center expansion could pressure cash flow if demand or efficiency trends shift.
Warnings about an AI infrastructure glut gained a sharper financial dimension after Moody's estimated that Alphabet, Microsoft, Amazon, Meta and Oracle have accumulated $1.65 trillion in obligations tied to AI infrastructure expansion, roughly eight times the level four years ago and above their combined $1.35 trillion of on-balance-sheet debt. Mark Cuban had argued that major technology companies risk overbuilding data centers if efficiency gains sharply reduce the computing power and electricity needed for AI, potentially leaving expensive facilities with diminished value. Moody's said the five companies also carry about $662 billion in unbooked data-center lease commitments, while analysts warned that long-term AI spending could strain cash flow if revenue growth does not keep pace.