Meta's drive into AI brings to mind the dangers of excessive dark-fiber expansion seen in the 1990s

According to BofA analysts, yesterday’s stock market downturn marks the conclusion of the “cutting season,” with attention now turning to possible risks in 2025, especially in industries with significant capital investments and unpredictable outcomes. One of the most closely watched companies is

Inc. (META), which has launched a $30 billion bond offering—the largest in its history—to support the expansion of its AI infrastructure, as reported by . This follows a $27 billion deal with Blue Owl Capital to fund the Hyperion data center in Louisiana, a project that has changed the way hyperscalers obtain funding by using special-purpose vehicles (SPVs) and off-balance-sheet financing, according to . While this approach is seen as forward-thinking, it also brings up concerns about long-term gains as commits tens of billions to AI computing resources amid increasing expenses and regulatory oversight.

Meta’s third-quarter financial results highlighted these issues: the company generated $51.2 billion in revenue, surpassing forecasts, but net profit dropped 83% year-over-year to $2.7 billion due to a one-time $15.9 billion tax expense from the U.S. “One Big Beautiful Bill Act” and surging AI-related capital spending, according to

. Earnings per share came in at $6.03, missing projections and causing shares to fall after the report. CEO Mark Zuckerberg reiterated the company’s long-term strategy, saying that AI investments would bring “new capabilities” and future growth, while CFO Susan Li noted that the “substantial reduction” in U.S. federal tax payments would likely be redirected into infrastructure, as reported by . Reality Labs, Meta’s hardware segment, recorded a $4.4 billion loss, and there are no plans to launch a new Quest headset in 2026 to help offset these costs.

The SPV financing model introduced by Meta’s Hyperion initiative has drawn parallels to the dark-fiber overbuild crisis of the 1990s, when excess capacity led to financial troubles, as Fortune points out. While experts such as Arthur D. Little’s Sean McDevitt believe this method enables faster scaling by tapping into outside funding, skeptics caution that there are risks if anticipated AI workloads do not materialize. Meta’s strategy reflects a wider industry movement: Alphabet, Microsoft, and Amazon are expected to collectively invest $400 billion in AI infrastructure just this year.

Outside the technology sector, other industries experienced varied developments. The Indian government approved a record Rs 37,952 crore subsidy for phosphatic and potassic fertilizers to assist farmers during the 2025-26 Rabi season, according to the

. Meanwhile, Paris Saint-Germain (PSG) announced a record €837 million in revenue for the 2024-2025 season, fueled by increased commercial income and merchandise sales, as reported by .

BofA’s caution points to a larger market reality. While Meta’s aggressive AI investments and use of SPVs showcase the tech sector’s drive for innovation, they also highlight the fragility of a market where immediate profits are hard to achieve. As 2025 unfolds, investors will be watching closely to see if these bold strategies deliver lasting gains or amplify existing risks.