Five major US technology companies are hiding $1.65 trillion in debt related to AI infrastructure investments, according to a Nikkei Asia investigation.

Alphabet, Microsoft, Amazon, Meta, and Oracle have accumulated this off-balance-sheet debt through special purpose vehicles and legally distinct subsidiaries. The hidden figure exceeds the $1.35 trillion in debt these companies officially reported in their most recent quarterly filings.

Meta alone accounts for approximately $420 billion of the concealed debt. The social media giant, like its peers, is using accounting arrangements that mirror those employed by Enron before its 2001 collapse.

Why Companies Are Hiding AI Spending

The debt stems from massive data center construction projects required to support increasingly complex AI models. These facilities demand enormous upfront capital investments with uncertain long-term returns.

Companies are also issuing new shares to fund these projects, potentially diluting existing equity and undermining investor confidence. The accounting treatment allows firms to present healthier balance sheets than their actual financial position suggests.

"The accounting treatment itself is in fashion," technical accounting consultant Tom Selling told Bloomberg. "But what if one of these companies was a house of cards and was propping itself up with this accounting treatment? To me, that's the risk."

The revelation adds weight to warnings about an AI bubble, with critics pointing to the widening gap between company valuations and actual profits. The hidden debt could make these companies more vulnerable if AI demand fails to justify the infrastructure spending spree.

Four of the five companies analyzed will report second-quarter earnings in the coming weeks, providing fresh insight into their financial health amid the AI investment boom.

The scale of hidden debt raises questions about transparency in an industry already facing scrutiny over its sustainability and long-term viability.