Tech’s Hidden Debt Piles Raise Bubble Fears In AI Spending Boom

Benzinga

Analysts warn that rising off-balance-sheet debt tied to AI infrastructure echoes the subprime and dot-com bubbles. Meta and Oracle are raising billions through private and public debt as risk shifts out of view. Economists say the opaque financing signals a late-stage market driven by aggressive, debt-fueled expansion.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Analysts warn that surging debt tied to AI spending mirrors past bubbles, according to Axios.

00:07Big tech is using private debt in special purpose vehicles, which shows to be reflected on balance

00:11sheets.

00:12MEDA is seeking $29 billion via private capital for data centers, while Oracle recently raised

00:17$18 billion in public debt.

00:19TS Lombard's Dario Perkins likened the off-balance sheet financing to the subprime era, saying

00:24its signals risk is being shifted out of sight.

00:26He argues today's debt-fueled expansion resembles the late-stage dot-com bubble, with firms

00:31spending aggressively despite uncertain returns.

00:33Professor Paul Kodrowski, out of the masking-eyed debt for credit agencies, shows companies

00:37fear scrutiny, calling it a warning sign of a late-cycle market.

00:41For all things money, visit Benzinga.com.

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