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BIS Warns Hyperscalers’ $1.65T Off-Balance Debt Risks Nvidia

8/14/2026

Summary

Story summary

Michael Burry posted a diagram on X that shows an $879 billion purchase-commitment loop linking Microsoft, Oracle, OpenAI, Nvidia and AMD.
The Bank for International Settlements warned in its late-June 2026 Annual Report that the five largest hyperscalers hold about $1.65 trillion off-balance-sheet debt, noting that Nvidia’s five-year credit-default-swap spread has doubled in two months.
Oracle, Microsoft and OpenAI together pledged $300 billion, $250 billion and $90 billion respectively, with OpenAI also buying Nvidia equity.

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Story summary

Michael Burry posted a diagram on X that shows an $879 billion purchase-commitment loop linking Microsoft, Oracle, OpenAI, Nvidia and AMD.
The Bank for International Settlements warned in its late-June 2026 Annual Report that the five largest hyperscalers hold about $1.65 trillion off-balance-sheet debt, noting that Nvidia’s five-year credit-default-swap spread has doubled in two months.
Oracle, Microsoft and OpenAI together pledged $300 billion, $250 billion and $90 billion respectively, with OpenAI also buying Nvidia equity.