Nvidia’s AI Boom Fuels Rising Hidden Debt Among Cloud Giants

Cloud hyperscalers are spending record amounts on AI data centers, GPUs, networking, cooling, and power.

Nikkei-cited research estimates they also carry about $1.65 trillion in off-balance-sheet obligations tied to these investments.

Nvidia remains a key winner as demand for its AI chips keeps rising.

The concern is that the AI boom may rely on future earnings growth to absorb these long-term commitments.

If AI adoption or monetization slows, the hidden leverage could become a financial risk.