Hidden AI-related commitments are skyrocketing among Big Tech companies: The top 9 US tech firms have ~$3 trillion in off-balance-sheet commitments, including leases for data centers and power infrastructure that have not yet commenced, as well as purchase commitments for AI-related equipment and services. This is roughly triple the amount that these firms report on their balance sheets in leases and long-term debt. This also compares to ~$600 billion in CapEx reported over the last year. Alphabet, GOOGL, alone posted an increase of more than +800% YoY in off-balance-sheet obligations, more than 7 times its YoY increase in CapEx. This was followed by Meta, META, which reported an increase of more than +750% YoY in such obligations, more than 9 times the increase in CapEx over the same period. AI infrastructure is driving one of the largest corporate investment waves in history.(The Kobeissi Letter)