Famed “Big Short” investor Michael Burry is taking a public victory lap over a new Wall Street Journal report revealing that technology giants have accumulated $3 trillion in future artificial intelligence spending that remains hidden off their official balance sheets.

‘You Could Have Heard It First‘

Taking to X on Aug. 17, Burry shared a graphic from the WSJ article titled “Why Big Tech’s AI Spending Is $3 Trillion Higher Than It Seems.” Seizing the moment to highlight his early foresight on these massive capital expenditures, Burry posted, “Well, you could have heard it first, months ago, 2025 even.”

Burry did not just stop at claiming vindication; he also issued a cryptic forward-looking warning about future market dynamics. He compared the financial media’s delayed realization of the true AI spending tab to current market risks, stating, “Like compression’s threat now, to be covered in 2027 by @WSJ and @CNBC.”

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The Hidden AI Iceberg

The WSJ analysis paints a picture of financial obligations that go well beyond public financial statements. While giants like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), and Microsoft Corp. (NASDAQ:MSFT) currently report a combined $248 billion in lease liabilities and $356 billion in long-term debt on their balance sheets, the vast bulk of their financial commitments remain beneath the surface.

According to the WSJ data as shown in its graphic, the companies had about $1.2 trillion in obligations from leases that haven’t started and another $1.9 trillion in purchase commitments.

Alphabet Leads the Spending Surge

A deeper breakdown of these off-balance-sheet purchase commitments reveals that Google’s parent company, Alphabet, is taking the most aggressive financial posture in the AI arms race.

Alphabet alone accounts for an enormous $811.0 billion in hidden purchase commitments. By comparison, Meta holds $349.3 billion in similar commitments, while Microsoft reports $228.6 billion and Amazon holds $130.1 billion.

How Have These Stocks Performed?

Stocks1-Month6-MonthsYTD1-Year5-Years
MSFT28.70%23.44%2.44%-5.18%69.17%
AMZN6.13%32.12%13.79%13.71%59.47%
GOOG-3.86%12.26%9.48%68.55%148.21%
META-10.77%-7.80%-10.64%-24.58%62.41%

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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