Oracle, Meta, xAI, CoreWeave move $120B of AI debt off books using Wall Street SPVs

Oracle, Meta, xAI, and CoreWeave are pushing more than $120 billion of AI data center spending off their balance sheets, using Wall Street money and complex legal structures to fund the infrastructure behind artificial intelligence. The financing is flowing through special purpose vehicles, known as SPVs, allowing the companies to secure computing power while keeping large debts out of their core financial statements. The deals have pulled in private capital from Pimco, BlackRock, Apollo, Blue Owl Capital, and major US banks, including JPMorgan, according to the Financial Times. The money sits inside SPVs that own land, buildings, and chips, so the tech companies are leasing the assets. Private capital absorbs massive AI data center borrowing Silicon Valley companies once relied on cash and low debt, but that changed as the race for AI computing power intensified and building data centers now requires tens of billions of dollars at a time....

https://www.cryptopolitan.com/oracle-xai-meta-coreweave-off%e2%80%91balance-sheet/