Alphabet, Microsoft, Amazon, Meta, and Oracle 'are hiding an estimated $1.65 trillion in debt', drawing…

https://cdn.mos.cms.futurecdn.net/okt5myc3MwKUsdMaigYsi8-1920-80.jpg
  • Hidden AI debts are attracting fresh scrutiny across America's biggest technology companies
  • Massive data centre spending is testing investor confidence like never before
  • Meta reportedly carries the largest off-balance-sheet obligations among the five companies

An investigation by Nikkei Asia has claimed five of America's largest tech companies are reportedly concealing huge debts outside their official financial statements.

Alphabet, Microsoft, Amazon, Meta, and Oracle together account for roughly $1.65 trillion in liabilities missing from their public balance sheets.

That figure exceeds the $1.35 trillion these firms officially disclosed last quarter, with Meta alone holding roughly $420 billion off-balance-sheet.

Echoes of Enron

Analysts have begun drawing direct parallels to Enron, the energy trading company whose 2001 collapse remains a cautionary tale in corporate finance.

Like Enron once did, these tech giants rely on special purpose vehicles, essentially legally separate subsidiaries, to keep debt off their books.

Such arrangements can make...

Copyright of this story solely belongs to techradar.com. To see the full text click HERE

Read more