{"id":267081,"date":"2025-11-02T15:01:21","date_gmt":"2025-11-02T15:01:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/267081\/"},"modified":"2025-11-02T15:01:21","modified_gmt":"2025-11-02T15:01:21","slug":"meta-xai-spread-risks-of-ai-splurge-with-off-balance-sheet-debt","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/267081\/","title":{"rendered":"Meta, xAI Spread Risks of AI Splurge With Off-Balance-Sheet Debt"},"content":{"rendered":"<p class=\"ArticleBodyText_articleBodyContent__17wqE typography_articleBody__3UcBa\" data-component=\"paragraph\">Just this month, <a href=\"https:\/\/www.bloomberg.com\/quote\/META:US\" target=\"_blank\" rel=\"noopener nofollow\" class=\"media-ui-Link_link-tVkXhPLPofs-\" data-component=\"link\">Meta Platforms Inc<\/a>. has secured about $60 billion in capital to build data centers, part of its spending to get ahead in the artificial intelligence race. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-10-16\/blue-owl-seals-largest-private-capital-deal-for-meta-s-ai-growth\" target=\"_blank\" rel=\"noopener nofollow\" class=\"media-ui-Link_link-tVkXhPLPofs-\" data-component=\"link\">Half of that<\/a> won\u2019t show up on the social media giant\u2019s balance sheet as debt. <\/p>\n<p class=\"ArticleBodyText_articleBodyContent__17wqE typography_articleBody__3UcBa\" data-component=\"paragraph\">Meta is among firms popularizing a way for debt to sit completely off balance sheet, allowing enormous sums to be raised while limiting impact on its financial health. <a href=\"https:\/\/www.bloomberg.com\/quote\/MS:US\" target=\"_blank\" rel=\"noopener nofollow\" class=\"media-ui-Link_link-tVkXhPLPofs-\" data-component=\"link\">Morgan Stanley<\/a> structured a $30 billion deal \u2014 the <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-10-16\/blue-owl-seals-largest-private-capital-deal-for-meta-s-ai-growth\" target=\"_blank\" rel=\"noopener nofollow\" class=\"media-ui-Link_link-tVkXhPLPofs-\" data-component=\"link\">largest private capital<\/a> transaction on record \u2014 where the debt would sit in a special purpose vehicle tied to <a href=\"https:\/\/www.bloomberg.com\/quote\/OBDC:US\" target=\"_blank\" rel=\"noopener nofollow\" class=\"media-ui-Link_link-tVkXhPLPofs-\" data-component=\"link\">Blue Owl Capital Inc<\/a>. That made it easier for Meta to raise another $30 billion this week the usual way, in the corporate bond market. <\/p>\n","protected":false},"excerpt":{"rendered":"Just this month, Meta Platforms Inc. has secured about $60 billion in capital to build data centers, part&hellip;\n","protected":false},"author":2,"featured_media":267082,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,4592,3055,8084,92967,1535,3487,3201,66140,74,164],"class_list":{"0":"post-267081","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-bonds","12":"tag-debt","13":"tag-earnings","14":"tag-meta-platforms-inc-class-a","15":"tag-morgan-stanley","16":"tag-nvidia-corp","17":"tag-private-equity","18":"tag-spread","19":"tag-technology","20":"tag-venture-capital"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/267081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=267081"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/267081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/267082"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=267081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=267081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=267081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}