Five major technology corporations have accumulated approximately $1.65 trillion in off-balance-sheet AI infrastructure obligations, commitments that have octupled over four years and now exceed their reported debt. The hidden liabilities, disclosed in SEC footnotes, include Meta Platforms' $420 billion in obligations — three times its reported debt.
Alphabet reported second-quarter 2026 revenue of $120 billion, up 24% year-over-year, with cloud revenue surging 82% to $25 billion. The company expects 2026 capital expenditures between $195 billion and $205 billion for AI infrastructure. Microsoft, Alphabet, Amazon, Meta and Oracle are projected to spend more on capital expenditures than they generate in free cash flow by 2027, with combined capex rising nearly $534 billion from 2025 through 2027.
Despite strong cloud growth — Amazon Web Services expanded 28% and Microsoft's AI business hit a $37 billion annual run rate — investors remain focused on mounting buildout costs versus returns.