Big Tech is racking up serious debt, $687 billion globally, just to keep up in the AI race.
Five hyperscalers, such as Alphabet and Amazon, have collectively issued $296 billion in debt this year to build out their AI infrastructure, and there's another $1.7 trillion tied up in lease commitments.
It's a massive bet on where tech is headed next.
Tech firms face $1.9T purchase obligations
These companies also face $1.9 trillion in purchase obligations, with $685 billion due by the end of 2027, putting extra pressure on their finances.
Investors are getting more cautious, and credit agencies warn that unless these firms can boost AI adoption and actually make money from it by 2028, all this spending could backfire.
The message: it's time for these big bets on AI to start paying off.