BIG TECH AI DEBT DELUGE MIGHT BE EVEN WORSE THAN PREVIOUSLY REPORTED

What happened: S&P Global warned Monday that Big Tech may carry more AI-related financial exposure than investors realize, as companies use outside investors, guarantees and complex financing to fund data center expansion. Key numbers: S&P estimates Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX will spend Why it matters: S&P's Mark Habib said it is safe to assume there is more debt not being seen, and the agency projected negative free operating cash flow for the group in 2026 and 2027. S&P downgraded Oracle to BBB- in July, citing AI capital requirements and cash flow weakness.

S&P Global warned Monday that Big Tech may carry more AI-related financial exposure than investors realize, as companies use outside investors, guarantees and complex financing to fund data center expansion.

S&P's Mark Habib said it is safe to assume there is more debt not being seen, and the agency projected negative free operating cash flow for the group in 2026 and 2027. S&P downgraded Oracle to BBB- in July, citing AI capital requirements and cash flow weakness.