PremiumThe Off-Balance Sheet Time Bomb Inside AI Hits $3.1 Trillion: Up $1.3TN In Three Months
Two and a half months ago, we dropped a widely read premium analysis detailing "The $1.8 Trillion Off-Balance Sheet Time Bomb At The Heart Of The AI Supercycle" looking at the more murky, less discussed if extremely important, aspects of the AI ecosystem.
In the report, we explained why simply looking at the projected CapEx spending - whether $1 or $2 of however many trillion per year the latest and greatest estimate projects - was missing arguably the most important number, highlighting the elephant in the room: $1.8 trillion in off-balance sheet leverage, to wit: "Long-term purchase commitments of ~$1tn and lease commitments >$800bn further support the AI buildout, but add off-BS operating leverage."