Moody’s Warns AI Spending Boom Threatens Big Tech’s Finances as Trillion-Dollar Infrastructure Race Raises Credit Risks - Tekedia

Moody’s warned that surging AI infrastructure spending is cutting free cash flow and increasing leverage for Big Tech.

Hyperscalers like Microsoft, Alphabet, Amazon, Meta, and Oracle are pouring money into data centers, GPU chips, and power infrastructure.

Moody’s projected capital expenditures could reach $785 billion in 2026 and roughly $1 trillion a year in 2027.

Rising debt and off-balance-sheet lease commitments are making once cash-rich tech giants more capital-intensive and more exposed to credit risk.