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Story summary
- Moody's warned AI infrastructure spending erodes cash flow and raises balance-sheet risk for hyperscalers.
- The surge forces firms such as Alphabet and Microsoft to use debt, equity sales and off-balance-sheet financing.
- Direct debt of Microsoft, Amazon, Alphabet, Meta, Oracle and CoreWeave totals $460 billion, threatening credit quality.
- Capital expenditures are projected at $785 billion in 2026 and $1 trillion in 2027.
- Alphabet announced an $85 billion equity sale last month to fund AI expansion.
