Big Tech Companies Used Debt to Fund AI Infrastructure
Tech giants have shifted billions in artificial intelligence infrastructure costs off their balance sheets.
Updated on Sept. 28, 2026 in Data Centers
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Major technology firms have increasingly utilized off-balance-sheet financing, including special-purpose vehicles and debt guarantees, to fund massive AI infrastructure projects. Investor Steve Eisman recently identified these strategies as methods used by companies to manage significant capital expenditures while attempting to protect credit ratings.
Why it matters
Keeping infrastructure debt off balance sheets allows companies to obscure the true scale of their financial commitments to AI. As costs for data centers soar, these opaque financing structures present hidden risks to corporate credit profiles and overall financial health.
Oracle raised $43 billion in debt during fiscal 2026, while Nvidia reported Data Center revenue of $89 billion, a 117 percent year-over-year increase. Additionally, Oracle currently faces a negative free cash flow of $23.7 billion.
The players
Steve Eisman
He is a prominent investor who gained widespread recognition for identifying financial risks in the lead-up to the 2008 housing crisis.
Oracle
It is a multinational computer technology corporation that provides enterprise software and cloud computing services.
Meta
It is a technology conglomerate that operates major social media platforms and invests heavily in artificial intelligence infrastructure.
Blue Owl
It is an alternative asset management firm that focuses on credit, GP strategic capital, and real estate investment strategies.
Nvidia
It is a technology company that designs graphics processing units and is a primary hardware supplier for artificial intelligence data centers.
The details
Companies like Meta and Oracle are employing complex debt structures to manage the costs of AI expansion, such as the $18 billion Oracle Project Jupiter data center. Meta owns a 20 percent stake in the Hyperion venture, while Blue Owl-managed funds hold the remaining 80 percent, with a Blue Owl vehicle having raised $27.3 billion in debt to fund the project.
Timeline
Fiscal 2026 saw Oracle raise $43 billion in new debt.
S&P downgraded Oracle credit rating to BBB- on July 9, 2026.
Polymarket traders view December 31, 2026 as the target date for a potential AI industry downturn.
The Tech Race
This trend mirrors the financial engineering patterns that preceded the 2008 global financial crisis as companies lean on opaque debt structures to fuel AI growth. The aggressive expansion marks a departure from traditional capital allocation, signaling a high-stakes race to dominate AI hardware.
Investors should be aware that aggressive debt financing could lead to increased stock volatility for tech companies as credit ratings come under scrutiny. These strategies may also affect the long-term sustainability of cloud services and the pricing of digital infrastructure products.
The takeaway
The heavy reliance on debt to fund massive infrastructure projects suggests that AI growth is being built on a foundation of leverage rather than just organic revenue. Investors should closely monitor corporate audit reports for signs of similar off-balance-sheet liabilities in the tech sector.
What happens next
Traders are monitoring the performance of AI-related debt for a potential industry downturn by the December 31, 2026, contract expiration.
Further reading
Learn more about how these developments impact the industry on the Data Centers page.
Source note: This article includes information reported by Benzinga.
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