Microsoft shares plunged 12%, wiping out $440 billion in market value amid investor backlash over massive AI capital expenditures. The sell-off reflects growing concerns that OpenAI debt obligations could become a systemic risk for Big Tech.

The company disclosed that 45% of its $625 billion in remaining performance obligations are tied to OpenAI, revealing deep financial exposure. This revelation came alongside a 66% surge in capex to $37.5 billion, even as Azure growth slowed.

Investors are now questioning whether AI investments can deliver promised returns. Oracle has also been punished, with shares down 50% from highs, as concerns mount over funding for data centers linked to OpenAI. Meta has avoided similar scrutiny due to strong ad revenue growth.

Market participants fear a repeat of the dot-com bubble, where capital spending failed to translate into profits. Analysts warn that without near-term revenue visibility from AI ventures, further stock declines may follow.