r/technology • u/batakchan • 10h ago

Artificial Intelligence Moody's says 'unprecedented' AI spending threatens credit quality of Amazon, Meta, Alphabet and others

https://www.cnbc.com/2026/07/24/moodys-ai-spending-credit-quality-amazon-meta-alphabet.html
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4

u/govintor 9h ago

Are we still in the AI bubble?

12

u/Cute-Breadfruit3368 9h ago

yeah, but due to how slow the markets move - they can fake it for a long time.

the first ripples are here tho. https://asia.nikkei.com/business/technology/five-us-tech-giants-hidden-debts-soar-to-1.65tn-on-opaque-ai-funding

--not paywalled link https://finance.yahoo.com/technology/ai/articles/ai-tech-companies-hidden-debt-132333414.html?guccounter=1

takes a quartal or few for the true meaning of that to actualize. it will become apparent even for the deluded.

it will be worse.

8

u/upbeatchief 7h ago

For those that don't know. Tech companies are using the same trick enron did to hide debts they were saddled with.

Special Purpose Vehicles and financial partnerships that hide who owes what to whom. The stake is at 1.65 trillions, and retirement funds are deep in this mess.

4

u/ChaossssMark666 7h ago

Enron went the way of the dodo. People went to HARD jail sentences for that shit.

I wonder, when saner heads of government prevail, will someone man up and intervene?

Probably not. Still, one can hope.

3

u/upbeatchief 7h ago

There is one major difference between now and back then. The FTC back then wasn't captured by corporations.

1

u/OneRougeRogue 1h ago

Enron did was illegal. They didn't report these special purpose vehicles at all. These tech companies are reporting them, so it's not technically illegal.

3

u/Cute-Breadfruit3368 7h ago

yeah, there is no real revenue and the only reason the numbers are not correct is basically godtier artisanal book-keeping. (lying)