S&P Global warns: Tech giants' AI infrastructure-related debt may be higher than publicly disclosed levels.

October 21 - S&P Global warned on Monday that the actual debt and contingent liabilities related to AI infrastructure of six major tech companies, including Amazon, Microsoft, Alphabet, Oracle, Meta, and SpaceX, may be higher than reflected in public data.

S&P expects that these six companies will spend more than $7 trillion on capital expenditures for data centers and other AI projects between 2025 and 2030, and will maintain negative free cash flow at least until next year. Rating agencies have not yet broadly downgraded credit ratings as a result, but believe the biggest risk is that after the massive investments are completed, expected profits will not materialize.