• someguy3@lemmy.world
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    16 hours ago

    A Nikkei analysis of financial footnotes at Alphabet, Microsoft, Amazon, Meta, and Oracle found $1.65 trillion in off-balance-sheet obligations tied to AI infrastructure — binding, must-pay commitments parked in the fine print.

    …a company creates or partners with a separate legal entity — a special-purpose vehicle (SPV) — that borrows the money and owns the assets. The tech company signs long-term leases or capacity contracts but doesn’t record the SPV’s debt on its own books.

    • ptu@sopuli.xyz
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      4 hours ago

      That is one way of saying upcoming lease contracts and purchase commitments reported according to IFRS and IAS and disclosed on financial statements.