S&P cuts Meta outlook to negative as AI spending strains balance sheet

S&P Global Ratings lowered its outlook on Meta Platforms' AA- credit rating to negative, citing heavy artificial-intelligence spending, rising leverage and uncertainty over when those investments will generate revenue above their costs. The move does not put Meta on immediate downgrade watch, but it signals a possible cut within the next two years. S&P forecast capital spending will reach $140 billion this year and exceed $225 billion in 2027, with leverage climbing above 1 times as soon as next year from about 0.1 times last year. Earlier this month, Meta disclosed more than $800 billion in future spending commitments, much of it tied to data centers and energy infrastructure.