Ratings agency Moody’s warned that massive investments in artificial intelligence infrastructure are eroding free cash flow and increasing balance-sheet risk at hyperscalers. Capital expenditures are projected to reach $785 billion in 2026 and approximately $1 trillion in 2027. To fund this expansion, the six companies tracked by Moody’s (Microsoft, Amazon, Alphabet, Meta, Oracle and CoreWeave) have accumulated approximately $460 billion in direct debt and $1.2 trillion in data center lease commitments. Moody’s said these obligations threaten credit quality, though Microsoft, Alphabet, Amazon and Meta retain among the strongest corporate balance sheets in the world.
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