The AI math doesn’t ADD up.
Big Tech is borrowing billions to build AI data centers, and one of its biggest customers, OpenAI, just posted a $10.9 BILLION operating loss in one quarter.
Amazon, Alphabet and Meta’s long-term debt has nearly quadrupled in a year to $379 BILLION, per their filings.
Oracle’s quarterly interest bill jumped 55% to $1.43 BILLION, as it builds out a cloud deal with OpenAI reported at about $300 BILLION.
CoreWeave’s interest bill hit $846 MILLION in Q3, about 4 times its operating income, with OpenAI contracts worth up to $22.4 BILLION.
Meanwhile, OpenAI’s Q3 operating loss of $10.9 BILLION came on $10 BILLION of revenue, while rival Anthropic’s was just $567 MILLION on $17 BILLION, per WSJ.
💵BIG TECH: Big Tech’s AI bill is FAR BIGGER than its balance sheets show.
Goldman Sachs puts off-balance-sheet commitments at the five hyperscalers, Nvidia, Broadcom and SpaceX at about $4.11 trillion.
The debt and leases these companies actually report total around $1 trillion.
That gap will narrow. Most hyperscaler leases haven’t started yet, and Goldman says about $685 billion comes due by the end of 2027.