--- title: S&P turns negative on Meta as AI spending eats into its cash description: S&P Global Ratings cut its outlook on Meta's AA- credit rating to negative from stable, citing heavy AI spending. S&P says Meta's ability to monetize AI... canonical: https://daily.dev/posts/s-p-turns-negative-on-meta-as-ai-spending-eats-into-its-cash-lqcy4rgzk twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: S&P turns negative on Meta as AI spending eats into its cash | daily.dev og:description: S&P Global Ratings cut its outlook on Meta's AA- credit rating to negative from stable, citing heavy AI spending. S&P says Meta's ability to monetize AI... og:url: https://daily.dev/posts/s-p-turns-negative-on-meta-as-ai-spending-eats-into-its-cash-lqcy4rgzk og:image: https://api.daily.dev/og/posts/lQcY4RGzk.png og:image:alt: S&P turns negative on Meta as AI spending eats into its cash og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # S&P turns negative on Meta as AI spending eats into its cash **[The Next Web](https://daily.dev/sources/tnw)** · 2 min read · 0 upvotes · 0 comments ## Summary S&P Global Ratings cut its outlook on Meta's AA- credit rating to negative from stable, citing heavy AI spending. S&P says Meta's ability to monetize AI investments is more limited than peers like Amazon, Microsoft and Google, since Meta has no cloud business renting out computing power. S&P expects Meta's leverage to rise above 1.0x as soon as 2027, up from about 0.1x last year. Meta posted a $2.12B free cash outflow in Q3 and has $825B in commitments, and it started a $35B share sale this week. Meta spokesperson Kamran Mumtaz said the company disagrees with S&P's assessment. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did S&P lower its outlook on Meta's credit rating? S&P Global Ratings cut Meta's AA- credit rating outlook to negative from stable because Meta's ability to monetize its AI investments is more limited than peers like Amazon, Microsoft and Google. Unlike those companies, Meta has no cloud business renting out computing power, so it's unclear when its AI spending will generate more revenue than it costs. _Investors and engineers weighing AI infrastructure bets can follow how Meta's spending plays out on daily.dev._ ### How much is Meta's financial leverage expected to rise due to AI spending? S&P expects Meta's leverage, meaning its debt measured against earnings, to rise above 1.0x as soon as 2027, up from about 0.1x the prior year. That increase would breach the limit tied to Meta's current AA- credit rating, prompting the negative outlook. _Those tracking big tech's AI debt load can keep up with Meta's financials on daily.dev._ ### How did Meta respond to S&P's negative outlook on its AI spending? Meta spokesperson Kamran Mumtaz said the company respectfully disagrees with S&P's assertion about its AI monetization capabilities, adding that Meta sees significant product and business opportunities ahead supporting its very strong credit profile. Meta posted a $2.12B free cash outflow in Q3, has $825B in commitments, and started a $35B share sale this week. _Anyone weighing how AI capex affects big tech's balance sheets can follow the story on daily.dev._ ## Similar posts on daily.dev - [Meta has an AI product problem](https://daily.dev/posts/meta-has-an-ai-product-problem-ifk2sfcge) · TechCrunch · 1 upvotes · 0 comments - [Meta wants to rent out its spare AI compute, and Wall Street likes the idea](https://daily.dev/posts/meta-wants-to-rent-out-its-spare-ai-compute-and-wall-street-likes-the-idea-mfinavhml) · The Next Web · 0 upvotes · 0 comments --- [View this post on daily.dev](https://daily.dev/posts/s-p-turns-negative-on-meta-as-ai-spending-eats-into-its-cash-lqcy4rgzk) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"S\u0026P turns negative on Meta as AI spending eats into its cash","url":"https://daily.dev/posts/s-p-turns-negative-on-meta-as-ai-spending-eats-into-its-cash-lqcy4rgzk","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/s-p-turns-negative-on-meta-as-ai-spending-eats-into-its-cash-lqcy4rgzk"},"datePublished":"2026-10-30T23:00:37.556Z","dateModified":"2026-10-30T23:41:08.970Z","description":"S\u0026P Global Ratings cut its outlook on Meta's AA- credit rating to negative from stable, citing heavy AI spending. 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Unlike those companies, Meta has no cloud business renting out computing power, so it's unclear when its AI spending will generate more revenue than it costs. Investors and engineers weighing AI infrastructure bets can follow how Meta's spending plays out on daily.dev."}},{"@type":"Question","name":"How much is Meta's financial leverage expected to rise due to AI spending?","acceptedAnswer":{"@type":"Answer","text":"S\u0026P expects Meta's leverage, meaning its debt measured against earnings, to rise above 1.0x as soon as 2027, up from about 0.1x the prior year. That increase would breach the limit tied to Meta's current AA- credit rating, prompting the negative outlook. 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