Jul. 25 at 2:25 AM
Moody’s warned that the AI infrastructure race is putting increasing pressure on the financial profiles of major hyperscalers, including Microsoft, Amazon, Alphabet, Meta, Oracle and CoreWeave. The ratings agency said the industry's shift from asset-light software businesses to capital-intensive AI infrastructure requires unprecedented investment levels, forcing companies to rely more heavily on debt, equity issuance and off-balance-sheet financing.
Moody’s estimates AI-related capital expenditures will reach
$785 billion in 2026 and approximately
$1 trillion in 2027. Direct debt across the six companies has climbed to about
$460 billion, while data-center lease commitments have surged to
$1.2 trillion. Although Microsoft, Alphabet, Amazon and Meta retain strong balance sheets, Moody’s said the spending boom is eroding free cash flow and increasing credit risks, particularly for lower-rated companies such as Oracle and CoreWeave.
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