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Has secured about $60 billion in capital to build data centers, with half of that not showing up on the company's balance sheet as debt Financial media keeps drawing comparisons to enron’s use of spvs The bigger picture meta and xai’s financing maneuvers reflect just how expensive the ai arms race has become
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Building and running data centers at ai scale requires unprecedented capital—and the willingness to get creative. Xai is pursuing a $20 billion deal structured so elon musk only reports rent, not the underlying debt 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
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Morgan stanley structured a us$30 billion deal — the largest private capital transaction on record — where the debt would sit in.
Tech 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 (carmen arroyo/bloomberg) Meta platforms, for instance, has used an spv to raise $30 billion for a data center in louisiana, effectively keeping the debt off its balance sheet Similarly, elon musk's xai plans to use an spv to finance $20 billion for nvidia processors. Meta secured roughly $30 billion through an spv for its hyperion data center
