#debt-financing

#debt-financing

Companies supplying data centers, chips, and "compute" processing power to OpenAI have taken on about $96 billion in debt to fund their operations, according to an analysis by the Financial Times. The news highlights the AI sector's increasing reliance on debt and its growing dependence on loss-making AI startup OpenAI in particular.Currently, the revenues being generated by AI companies and many of the data center operators that are rapidly expanding in order to serve them, are nowhere near big enough to cover their build-out costs.

Zuckercorp has already warned of "notably larger" spending in 2026, but the company earned "only" $62 billion in profit last year, up from $39 billion in 2023. So even if it used all of its near-liquid assets - as of Q3, Meta had about $44.5 billion in cash, cash equivalents, and other marketable securities - and plowed every dollar of profit into bit barns for the next few years, Meta would be hard pressed to pull this off.

Healthcare is a long-term industry. It's about long-term health. It's about maintaining people's health over decades. Private equity's business model just inherently is short-term based. They are looking to get a company, profit off of it, exit the company in whatever way that is, whether it be bankruptcy or IPO or selling it off to another private equity firm," said Matt Parr, communications director of the Private Equity Stakeholder Project, a nonprofit that has been tracking private equity moves.

In a development that the UK's fourth largest full-fibre network has said reinforces confidence in its ability to deliver at scale while staying on track with its profitability targets, and in the face of stiff economic headwinds hitting similar companies, UK alternative network provider (altnet) Netomnia has announced that it has added £140m to its junior debt raise. The investment builds on Netomnia's £880m senior debt commitment, bringing total debt funding support to £1.2bn, and completes the £300m junior debt raise round.

Pennymac plans to use proceeds from its offering to repay borrowings under secured MSR facilities and other secured indebtedness. The offering is contingent upon market conditions.