Five Tech Giants are Hiding $1.65tn in AI Debt, Using the Trick That Toppled Enron

Ana-Maria Stanciuc for The Next Web: The money is tied up in off-balance-sheet vehicles, the same kind of structure Enron used to hide debt before it collapsed 25 years ago. Back then it was fraud. Now, tightened rules and fuller disclosures make it legal. […] The mechanics are simple. A company packages the debt for chips, servers, and power into a separate legal entity, often a joint venture, so the cost never flows through its own accounts. Take Meta’s Hyperion data centre in Louisiana. Meta and Blue Owl Capital both put equity into a separate structure that took on $27 billion in debt. Meta is the sole tenant, yet argues it does not have to record that debt, because it is not the one who must find replacement tenants. Oracle has $260 billion of future lease commitments that will eventually land on its books. Nvidia carries $119 billion in purchase obligations. Alphabet and Microsoft keep their vehicles off-book too. I hope I’m wrong, but it seems like good business to actually see…