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The constraint driving Moody's latest warning isn't compute pricing or the cost of power.
Even the most cash-generative technology companies in existence are hitting the ceiling of what internal cash flows can absorb, and Moody's says the scale of current AI capital expenditure is pushing Amazon, Meta, Alphabet, and others into debt markets, equity sales, and off-balance-sheet structures at a pace that threatens their credit standing.
The mechanism behind the rating pressure Corporate credit ratings turn on one variable above all: how much debt a company carries relative to its earnings power.
When capital spending runs persistently ahead of free cash flow, the gap gets filled by borrowing, by selling stock, or by shifting obligations off the balance sheet so they don't register directly in the debt column.
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