US Tech Giants Face AI‑Driven Debt and Cash‑Flow Strain

The five largest U.S. technology companies – Alphabet, Microsoft, Amazon, Meta and Oracle – are seeing their balance sheets pressured by massive artificial‑intelligence investments. According to a Nikkei report, off‑balance‑sheet liabilities tied to data‑center leases and GPU contracts have risen to about $1.65 trillion, an eight‑fold increase in four years. Analysts warn that if current capital‑expenditure trends continue, the same firms will spend more than the free cash flow they generate by 2027, with projected capex of $534 billion versus a $340 billion rise in cash flow. Market reactions to these AI spendings have been uneven: Apple’s share price fell about 8 % over the past month, far less than Microsoft’s 20 % decline, highlighting investor differentiation among the “Magnificent Seven”. Investor focus now centers on upcoming earnings reports, particularly how the companies will balance AI‑driven growth against rising debt and cash‑flow constraints.