Michael Burry, famed for his role in the 2008 financial crisis, revealed a startling study that shows U.S. technology giants carry vastly more debt than reported, totaling approximately $1.65 trillion in hidden liabilities. This hidden debt is not reflected on balance sheets due to complex disclosure practices.

Surge in Hidden Debt Among Tech Giants

The Nikkei Research found that the concealed debt of five major U.S. tech companies has increased sharply in recent years, growing eightfold in about four years. This surge coincides with heavy investments into artificial intelligence, which have significantly expanded these companies’ financial obligations beyond what is openly disclosed.

As of 2026, the estimated hidden debt of $1.65 trillion eclipses their officially reported debt, posing challenges for investors attempting to evaluate risk. In comparison, the figure was only in the low hundreds of billions in 2022 and is expected to nearly double by 2026 compared to 2025.

Company-Specific Debt Details Highlighted

The Nikkei report highlights Meta with the highest off-balance-sheet debt, estimated at $420 billion. Oracle’s hidden debt has escalated dramatically, increasing approximately 30 times over four years to $273.3 billion as of May 2026.

Oracle’s financial exposure is especially tied to its commitments to the artificial intelligence sector, particularly its relationship with OpenAI. Leaked financial data for OpenAI from 2024 and 2025 raise concerns about its capacity to meet payment obligations to Oracle.

Broader Implications for Tech Sector and Investors

Other companies in the group, like Alphabet and Microsoft, show signs of adapting to this financial strain. Alphabet raised over $80 billion recently through an equity offering supported by Warren Buffett and other investors, marking its first such fundraise in nearly 20 years.

Meanwhile, Microsoft and Amazon have been reducing their workforces, actions some interpret as efforts to conserve cash for ongoing capital expenditures amid growing debt loads.

Burry’s alert about this hidden debt reinforces his ongoing view that the current market conditions around big tech and AI investments are fragile.

Material is for informational purposes and does not constitute financial advice.