Meta's AI Project Accounting Sparks US Senate Probe Demand

Gotrade News - Auditor Ernst & Young flagged Meta Platforms' accounting move on a $27 billion data center. Keeping this massive project off the balance sheet quickly caught market regulators' eyes.

The Hyperion project operates as a joint venture with investment firm Blue Owl Capital. The tech giant only holds a 20% stake in this AI infrastructure play.

Key Takeaways:

• Ernst & Young issued an early warning over Meta's off-balance-sheet accounting maneuver.

• The US Senate is demanding a formal probe into potential AI infrastructure debt risks.

• Company management firmly defends this decision to ensure smooth artificial intelligence expansion.

Management claims the company is not the primary beneficiary of this joint entity. A Wall Street Journal report noted the auditor eventually signed off on the books.

However they still marked this technical move as a highly critical audit matter. Ernst & Young found evaluating the venture's economic performance to be quite challenging.

The company's accounting maneuver sparked fresh concerns at the federal government level. Four US senators promptly sent an official letter to Treasury Secretary Scott Bessent.

Senator Elizabeth Warren led this formal investigation request late last January. They urged the government to scrutinize potential systemic risks from AI development debt.

Company executives stand firm on defending this massive infrastructure building strategy. This huge Louisiana project is designed to reach up to 5 gigawatts of operating capacity.

Meta Finance Chief Susan Li called this financial maneuver a bold innovation. This strategic partnership is deemed crucial to realize the company's AI dominance ambitions.

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Reference:

• Seeking Alpha, Meta comes under scrutiny after WSJ report highlights auditor's data center accounting concerns. Accessed on February 12, 2026

• The WSJ, Meta Auditor EY Raised Red Flag on Data-Center Accounting. Accessed on February 12, 2026

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