AIBusinessTechnology

Morgan Stanley CIO Warns AI Debt Financing Signals Weakening Tech Bull Market

Morgan Stanley’s Chief Investment Officer Lisa Shalett suggests that massive debt-financed AI projects like Meta’s Louisiana data center signal increasing market complexity. The shift from cash to off-balance-sheet financing creates pressure for returns and potential market corrections.

Shift to Debt Financing Raises Concerns

Morgan Stanley’s Chief Investment Officer for Wealth Management, Lisa Shalett, has indicated that Meta’s $30 billion debt-financed AI data center project in Louisiana represents a significant shift in how technology companies are funding artificial intelligence development, according to Fortune reports. Sources suggest this departure from traditional cash-based financing signals that “the landscape has suddenly gotten a lot, lot, lot more complicated” for tech stocks moving forward.

AIBusinessStartups

Meta Cuts 600 Positions From AI Superintelligence Lab Amid Massive Tech Investment Push

Meta has reportedly eliminated 600 positions from its AI superintelligence research lab. The cuts come as the tech giant plans unprecedented capital expenditures exceeding $60 billion for artificial intelligence development in 2025.

Major Workforce Reduction at Meta’s AI Research Division

Meta has reportedly eliminated approximately 600 positions from its specialized artificial intelligence superintelligence laboratory, according to sources familiar with the matter. The lab, which focuses on developing AI systems that would potentially surpass human intelligence, was established in June following Meta’s announcement of a $14.3 billion investment in Scale AI, the company founded by entrepreneur Alexandr Wang.