>The investment requirements are so large that equity financing alone won’t do. The balance sheets of many of the major players have been altered significantly. Looking at Meta’s annual statement before ChatGPT was released to the public in November 2022, it had over three times as much cash as debt on its balance sheet. Last quarter it had 15% more debt. Microsoft had 30% more cash than debt pre-ChatGPT. Now it has almost 20% more debt. Amazon, which has traditionally had a more leveraged balance sheet, now has over 50% more debt than cash
I was still under the impression that all the faangs had more cash than liabilities, I wasn’t aware that had flipped
[https://www.bloomberg.com/news/newsletters/2025-12-31/everyone-s-watching-stocks-the-real-bubble-is-ai-debt](https://www.bloomberg.com/news/newsletters/2025-12-31/everyone-s-watching-stocks-the-real-bubble-is-ai-debt)
[https://archive.is/mwmia](https://archive.is/mwmia)