Connectivity Engineer

Michael Burry, the hedge fund manager who predicted the 2008 financial crisis, has warned that AI companies are hiding $3 trillion in data centre debts that could destabilise the global economy. Burry's analysis of regulatory filings reveals Apple, Google, Microsoft, Meta and Oracle have accumulated massive off-balance-sheet obligations. The five companies have signed $1.2 trillion in data centre leases, with at least $857 billion non-cancellable, plus over $1.5 trillion in supply chain purchase commitments. These liabilities don't appear on their balance sheets under current accounting rules. Burry warns this could reach $5 trillion by 2028. With combined annual earnings under $400 billion, Burry questions what happens if AI growth disappoints. Oracle, Microsoft and Meta shares have already fallen from recent peaks.

Bank of America strategist Michael Hartnett, who coined "Magnificent 7" in May 2023, warns the tech giants' defining strength has become a weakness. The group—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla—initially attracted investors seeking alternatives to government bonds during fiscal excess. However, massive AI spending has transformed their financial profile. Global AI investment is expected to exceed $1 trillion in 2026, with hyperscalers now spending similar amounts annually. The companies have become cash-flow negative by $200 billion and increasingly reliant on corporate credit markets. With 10-year Treasury yields near two-decade highs and 30-year yields exceeding 5.5%, rising borrowing costs directly threaten the AI spending that drives their growth. Hartnett notes they've become "subservient to the bond market"—the very asset class they once served as a hedge against.

Meta has denied claims that its $3.99 monthly Instagram Plus subscription reveals who repeatedly views stories, following user privacy concerns. The subscription shows total replay counts but does not identify individual repeat viewers, a Meta representative said. The features include a search bar for viewer lists and Story Preview, which lets subscribers view others' stories without appearing on viewer lists. Critics worry the tools encourage obsessive monitoring of viewer activity. TikTok user @suhaadada said she tried the free trial and noticed timestamps updating beside viewer names, suggesting repeated views. She found herself refreshing the list throughout the day. Meta did not directly address claims about changing timestamps. The subscription also allows users to extend stories by 24 hours and give certain stories more prominent placement.