US Tech Giants’ AI Spending Sparks $800 B Stock Plunge and $1.65 T Hidden Debt

In a single trading day U.S. investors erased more than $800 billion from the market value of the “Magnificent Seven” technology giants. Tesla led the sell‑off with a 14% decline, shedding $226 billion, while Alphabet lost $290 billion and Amazon, Meta and Microsoft each fell by billions of dollars. The sharp drop was driven by doubts over massive AI‑related capital expenditures and the profitability of those investments.

Separate analysis shows that the same five firms—Alphabet, Microsoft, Amazon, Meta and Oracle—have accumulated off‑balance‑sheet obligations for AI infrastructure totaling about $1.65 trillion, far above their reported $1.35 trillion debt. These commitments, disclosed only in footnotes, are financed through leases, special‑purpose entities and large loans such as the $27 billion financing of Meta’s Louisiana data centre. Meta alone may carry $420 billion of such hidden liabilities. Analysts warn that if AI revenue growth stalls, the hidden debt could pressure earnings, credit ratings and investor confidence, drawing parallels to the Enron scandal.

The convergence of a massive market sell‑off and the revelation of vast off‑balance‑sheet AI commitments underscores heightened financial risk for the sector and could shape upcoming earnings reports and market sentiment.