Meta, xAI Spread Risks of AI Splurge With Off-Balance-Sheet Debt

Bloomberg TechnologyFriday, October 31, 2025 at 3:48:05 PM
Meta, xAI Spread Risks of AI Splurge With Off-Balance-Sheet Debt
Meta Platforms Inc. has recently secured around $60 billion to invest in data centers, aiming to lead in the artificial intelligence sector. However, a significant portion of this funding, about half, will not be reflected on its balance sheet as debt, raising concerns about financial transparency and the risks associated with off-balance-sheet financing. This situation highlights the potential pitfalls of aggressive investment strategies in the tech industry, especially as companies race to innovate in AI.
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