The Enron-Era Tricks Are Back in AI: How These Companies Are Hiding Their Debt | The Weekly Wrap

Off-balance-sheet SPV financing reminiscent of Enron and the GFC is masking hyperscaler debt used to fund the AI buildout.

• Off-balance-sheet AI debt: Meta's Beignet Investor LLC SPV ($27B) with Blue Owl and PIMCO keeps a 20-year data center lease's debt off Meta's balance sheet despite Meta bearing overrun costs; Ernst & Young flagged it a 'critical audit matter' in Meta's 10-K.
• Oracle credit stress: S&P downgraded Oracle to BBB-, one notch above junk; Blue Owl's Project Jupiter data center debt for Oracle trades near 90 cents on the dollar after Oracle filed a force majeure notice.

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