Meta's Record Bond Sale Sparks AI-Driven Credit Market Surge
Originally Published 2 months ago — by Bloomberg.com
Meta and xAI are raising billions through off-balance-sheet debt structures like SPVs to fund AI data centers, a practice that offers financial flexibility but raises concerns about hidden liabilities and potential risks reminiscent of past financial scandals. The rapid increase in AI-related debt, estimated at around $100 billion per quarter, highlights a significant shift in tech financing, with private credit playing a growing role alongside traditional bonds.