Tech Giants Fund AI Buildout Using Off-Balance-Sheet Guarantees
TL;DR
Big Tech is increasingly backing AI data-centre and chip deals with residual value guarantees that cushion lenders while keeping most liabilities off their own books, enabling up to $300bn in commitments in the past year. Meta, Nvidia, Broadcom and others use SPVs to back debt, offering lenders cheaper funding but with longer-term credit risk if AI demand or pricing falters; agencies still adjust leverage, highlighting off-balance-sheet exposure as a new dimension of risk in the AI infrastructure boom.
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