Oracle, xAI, Meta, and CoreWeave drive $120 billion off‑balance sheet AI financing
The post Oracle, xAI, Meta, and CoreWeave drive $120 billion off‑balance sheet AI financing appeared on BitcoinEthereumNews.com.
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. Meta set the pace in October with a $30 billion private credit deal for its planned Hyperion data center in Louisiana, putting the project inside an SPV called Beignet Investor, created with Blue Owl Capital. The investment vehicle raised about $27 billion in loans from Pimco, BlackRock, Apollo, and other investors, alongside $3 billion in equity from Blue Owl. None of the debt appeared on Meta’s balance sheet, and that allowed the company raise another $30 billion in corporate bonds in November. Meanwhile, Oracle leases compute to OpenAI, so it has partnered with builders and financiers such as Crusoe, Vantage, Related Digital, and Blue Owl to develop multiple data centers, each owned by separate SPVs. One vehicle backing the Abilene, Texas facility received about $13 billion from Blue Owl and JPMorgan, including $10 billion in debt. Other arrangements include a $38 billion debt package for sites in Texas and Wisconsin…
Filed under: News - @ December 24, 2025 11:28 am