Moody's Ratings warns that artificial intelligence (AI) infrastructure construction is eroding the free cash flow of hyperscale companies such as Google parent Alphabet and Microsoft and increasing their balance sheet risks
Moody's Ratings warns that artificial intelligence (AI) infrastructure construction is eroding the free cash flow of hyperscale companies such as Google parent Alphabet and Microsoft and increasing their balance sheet risks. Moody's said in a research report released this week that share sales and off-balance sheet financing operations of these companies "threaten their credit quality." Moody's report tracks six companies, including Amazon, Meta, Oracle and CoreWeave. Despite the warning, Moody's noted that Microsoft, Alphabet, Amazon and Meta retained one of the strongest corporate balance sheets in the world.