Tech companies, including Meta and xAI, are using SPVs to raise tens of billions for AI data centers, letting them keep the debt off their balance sheets
Just this month, Meta Platforms Inc. has secured about $60 billion in capital to build data centers, part of its spending to get ahead in the artificial intelligence race.
Just this month, Meta secured $60 billion in capital for data centers, part of its spending to get ahead in the AI race. But half of that won't show up on its balance sheet. Here's how AI firms are raising money, and using financial engineering. https://www.bloomberg.com/...
The question is whether fixed income investors will figure out that all these debt deals have some serious credit risk correlations, and will limit their portfolio allocations accordingly. [embedded post]