US EditionPublished • loading... • Updated
Tech Giants Turn to Debt to Fund AI Data Centers
- Last week, Microsoft, Alphabet, Meta and Amazon reported their 2025 capital expenditures would total roughly $370 billion and said spending should rise in 2026.
- At the start of this year, tech giants financed AI projects mostly with cash on hand, as the ten largest US public companies began 2025 with historically high free cash flow margins, Derek Thompson reported.
- The biggest spender last quarter was Microsoft, putting nearly $35 billion into data centers while reporting revenue up 33 percent year over year.
- Analysts question whether the heavy spending is sustainable as tech firms continue investing in AI infrastructure, and if upgrades come sooner than the six-year chip lifespan estimate, profitability and performance may suffer.
- A large share of capital has flowed into GPUs and data centers as AI-related stocks accounted for 75 percent of S&P returns and 80 percent of earnings growth, while Harvard economist Jason Furman said data-center investment drove nearly all US GDP growth in early 2025.
Insights by Ground AI
Podcasts & Opinions
26 Articles
26 Articles
Meta Raised $27 Billion for an AI Data Center. Who’s Backing the Deal.
Meta Platforms and its partner raised $27 billion in private debt to fund the construction of its Hyperion data center in Louisiana. Some of the world’s biggest financial institutions are backing the deal.
·New York, United States
Read Full Article
Coverage Details
Total News Sources26
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
Factuality
To view factuality data please Upgrade to Premium
