S&P Global Warns on AI Borrowing: Hidden Liabilities May Exist

S&P Global announced that major technology firms may possess AI-linked debt obligations beyond what is currently known due to connected financing structures, though it does not foresee any credit rating changes for now.

Speaking at a roundtable in London, Mark Habib, Global Head of Digital Infrastructure at S&P Global, stated that hyperscalers could hold additional debt through unreported or unrated transactions. Habib noted that these obligations may remain invisible unless they are reported or rated.

S&P expects the top six U.S. tech giants—comprising Amazon, Microsoft, Alphabet, Oracle, Meta, and SpaceX—to spend more than $7 trillion between 2025 and 2030 on data centers and other AI expenditures, and to experience negative free cash flow at least through next year. Meanwhile, the agency downgraded Oracle's credit rating to BBB- in July amid concerns over AI spending.