Iran says seven ships hit near Hormuz as US and Israel reportedly plan post-midterm strikes Aramco evacuates headquarters and US pulls diplomats as Houthi strikes on Saudi Arabia intensify Russia strikes Kyiv after Witkoff-Putin talks as Ukrainian drones target Moscow Ebola reaches Nigeria as WHO warns of a more complex outbreak Oil climbs to five-month high as global stocks fall Millions of exploit attempts follow AI-found PHP flaws as sites return online French risk premium hits euro-crisis levels as borrowing costs pass US Death toll passes 150 after drone strike on Abyei market Trilateral Ukraine talks eyed for November as Witkoff's Putin remark angers allies Magnitude 7 earthquake kills at least 16 in northern Tibet France bans non-union protests ahead of Saturday demonstrations Lula accepts Bolsonaro's terms for record disclosure before Brazil run-off AI debt worries weigh on markets as Meta credit risk hits record Taiwan and China prepare as Super Typhoon Champi approaches Israel's race stays tight as Netanyahu courts right-wing voters Experts expect Meta to fight $25bn New Mexico penalty on appeal Israel frees nine settler suspects to house arrest as UN calls West Bank violence out of control Serbia's student list rallies in Belgrade as campaign closes before Sunday's vote North Korea to restart border propaganda broadcasts as tensions rise DeepSeek reportedly raises $15bn as TSMC seeks rare-earth workarounds Germany arrests Ukrainian man suspected of spying for Russia Italian truckers ease fuel-price protests as government lines up aid Trump asked Musk to lift Starlink limits in Ukraine, as Rubio says access is Musk's call Tesla profit falls as analysts debate SpaceX merger Protests in Indonesia demand action as haze blankets Southeast Asia Ankara rejects Greek and EU criticism of Libya maritime deal Afghanistan-Pakistan conflict turns to proxy groups after eight months ICC wins EU Sakharov Prize while under US sanctions Indonesia moves to shore up markets ahead of MSCI index change Retail investors fully subscribe Jio Platforms IPO Qatar, Turkey, Pakistan and Indonesia sign defence industry pact Nestlé removes Russian business from accounts after Kremlin takeover Albanian lawmakers scuffle in parliament as street protests continue NATO agency to let Ukraine buy weapons through its procurement system Aung San Suu Kyi speaks to son for first time in over five years Israeli fire kills four in Gaza as hospitals face fuel and medicine shortages Barclays to cut 5,000 jobs as it steps up AI adoption Iran says seven ships hit near Hormuz as US and Israel reportedly plan post-midterm strikes Aramco evacuates headquarters and US pulls diplomats as Houthi strikes on Saudi Arabia intensify Russia strikes Kyiv after Witkoff-Putin talks as Ukrainian drones target Moscow Ebola reaches Nigeria as WHO warns of a more complex outbreak Oil climbs to five-month high as global stocks fall Millions of exploit attempts follow AI-found PHP flaws as sites return online French risk premium hits euro-crisis levels as borrowing costs pass US Death toll passes 150 after drone strike on Abyei market Trilateral Ukraine talks eyed for November as Witkoff's Putin remark angers allies Magnitude 7 earthquake kills at least 16 in northern Tibet France bans non-union protests ahead of Saturday demonstrations Lula accepts Bolsonaro's terms for record disclosure before Brazil run-off AI debt worries weigh on markets as Meta credit risk hits record Taiwan and China prepare as Super Typhoon Champi approaches Israel's race stays tight as Netanyahu courts right-wing voters Experts expect Meta to fight $25bn New Mexico penalty on appeal Israel frees nine settler suspects to house arrest as UN calls West Bank violence out of control Serbia's student list rallies in Belgrade as campaign closes before Sunday's vote North Korea to restart border propaganda broadcasts as tensions rise DeepSeek reportedly raises $15bn as TSMC seeks rare-earth workarounds Germany arrests Ukrainian man suspected of spying for Russia Italian truckers ease fuel-price protests as government lines up aid Trump asked Musk to lift Starlink limits in Ukraine, as Rubio says access is Musk's call Tesla profit falls as analysts debate SpaceX merger Protests in Indonesia demand action as haze blankets Southeast Asia Ankara rejects Greek and EU criticism of Libya maritime deal Afghanistan-Pakistan conflict turns to proxy groups after eight months ICC wins EU Sakharov Prize while under US sanctions Indonesia moves to shore up markets ahead of MSCI index change Retail investors fully subscribe Jio Platforms IPO Qatar, Turkey, Pakistan and Indonesia sign defence industry pact Nestlé removes Russian business from accounts after Kremlin takeover Albanian lawmakers scuffle in parliament as street protests continue NATO agency to let Ukraine buy weapons through its procurement system Aung San Suu Kyi speaks to son for first time in over five years Israeli fire kills four in Gaza as hospitals face fuel and medicine shortages Barclays to cut 5,000 jobs as it steps up AI adoption

Symbolic image: AI debt worries weigh on markets as Meta credit risk hits record

Symbolic image

AI debt worries weigh on markets as Meta credit risk hits record

4 sources

Concerns over how the AI boom is financed hit markets on Thursday. Meta's credit risk gauge rose to a record after its results.

Reuters reports that Meta's credit risk indicator jumped to a record high after the company's results, and Bloomberg headlines put Meta's future spending commitments at $825 billion. Bloomberg also reports that SoftBank's market value is poised to halve from its peak. Handelsblatt, citing an analysis by the Flossbach von Storch Research Institute based on SEC filings and Bloomberg data, says Microsoft, Meta, Alphabet, Amazon and Oracle carry $2.7tn in firm AI commitments that do not appear on their balance sheets.

Leases and liquidity

According to the analysis, binding leases at the five groups rose from $68bn to $1.1tn in five years, while other commitments for software, infrastructure and energy grew from $129bn to $1.6tn. Net liquidity of $209bn at the end of June 2021 turned into $106bn of adjusted net debt, of which Oracle accounts for $88bn.

Risk assets fall, Treasuries gain

Bloomberg reports that bitcoin fell below $83,000 and copper declined as the tech selloff dulled risk appetite. It also reports that the long-end US yield hit a one-month low as AI fears fuelled a haven bid.