BUSINESSBATON ROUGE BUSINESS REPORT
Tech giants are piling on debt to fund AI expansion
Alphabet, Amazon, Meta, Microsoft, and Oracle have collectively added $350 billion in debt over five years to fund AI data center expansion. While companies remain financially strong, borrowing costs have increased, with combined annual interest expenses exceeding $10 billion. Amazon and Oracle show financial strain, and investor caution grows over the ROI of massive capital expenditures.
Mentioned
Related Signal
Adjacent reporting
- Hyperscalers are strapped for cash
- Amazon is borrowing $17.5 billion to help bankroll its massive AI buildout
- Amazon lines up another $17.5 billion for AI as its debt pile grows further
- Neuberger backs Ripple Prime with $200 million debt line for margin lending expansion: Bloomberg
- AI spending boom accelerates as Big Tech pours trillions into infrastructure
- Core Scientific plans $3.3B debt raise to fund AI data center push