Keep pulling the thread on Nikkei Asia.
Alphabet, Microsoft, Amazon, Meta, and Oracle are carrying more debt off their balance sheets than on them.
The combined off-balance sheet obligations for Alphabet, Microsoft, Amazon, Meta, and Oracle total approximately $1.65 trillion.
Meta has an off-balance sheet debt load of $420 billion, which is roughly three times its officially reported debt.
Big tech companies are using data center Special Purpose Vehicles (SPVs), financed by private credit funds, to move debt off their balance sheets.
The risk of the $1.8 trillion in off-balance sheet data center financing is held by private credit funds, not the big tech companies that are renting the compute.
The private credit industry has little to no regulation, increasing the systemic risk from its financing of the AI data center buildout.
A significant portion of Google Cloud's revenue growth is concentrated, originating from only two companies: OpenAI and Anthropic.
The revenue Google Cloud receives from OpenAI and Anthropic is funded by venture capital investors, creating a fragile, circular financing structure.
The Trump administration imposed a new 25% tariff on exports from Brazil.
The Trump administration announced a 50% tariff on Canadian goods, scheduled to go into effect on August 19th.
Oil prices reached $100 a barrel after Houthi forces attacked two Saudi Arabian tankers in the Red Sea.
Goldman Sachs predicts oil could surpass $120 a barrel by next quarter if disruptions in the Strait of Hormuz continue.