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.