AI’s Hidden Debt Problem Explained
00:00 – Introduction
03:01 – Big Tech’s Balance Sheet
05:56 – Categories of Off-Balance Sheet Items
06:20 – Non-Cancelable Contractual Commitments
08:49 – Funding/Construction Commitments
09:40 – Uncommenced Leases
11:20 – Financial Backstops/Guarantees
15:14 – Putting Things in Context
19:10 – The Risks
Headlines have been circulating about AI’s hidden debt problem – how bad is it really? We dive into the numbers in today’s video.
DISCLAIMER:
Richard has ETF exposure to all the companies mentioned in the video, and owns shares of Alphabet, Meta and Microsoft.
This channel is for education purposes only and does not constitute financial advice – Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer). Richard makes no warranties regarding the accuracy of data included in this video.
