Does Meta's Form 10-K for the year ended December 31, 2026 either consolidate the Hyperion joint venture in Louisiana or record a liability above zero for its residual value guarantees to that venture?
Read the 10-K's notes on the Louisiana data center joint venture and on residual value guarantees. The answer is yes if the filing says Meta consolidates the joint venture, or records a liability above zero for the residual value guarantees; no if it does neither. At June 30, 2026 the Form 10-Q did neither: an equity method investment of $2.92 billion, a maximum exposure to loss of $46.03 billion and no liability recorded for the guarantees.
If the source is late or silent: If the 10-K is not public on EDGAR by March 1, 2027, the test is inconclusive, and the Result says what was read and what was missing; the next reading is March 31, 2027. A guarantee liability recorded without its amount counts as above zero; a change that ends the guarantees before December 31, 2026 is read into the Result and resolves no.
If no
The cash flows cover it
Expects neither, since payment under the guarantees remains far off and not yet probable under accounting rules.
If yes
The lease is already debt
Expects consolidation or a booked liability, since the joint venture's guarantees function as debt even if unbooked today.
50%
NoYes
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The case · 18 people · 2 minutes
The cash flows cover it7 people argue nounsided7The lease is already debt4 people argue yes
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Meta's data center JV structure shows that the parties closest to the assets do not believe the value will hold: lenders would not bear residual value risk without protection, so Meta issued a residual value guarantee of up to $28 billion on…
Kris has always said that if one pin falls among the AI companies many others would follow; they mostly thought of OpenAI, but consider Oracle a weak link in the chain as well.
Strongest against the CallHaim Zaltzman · Sep 29
The presence of guarantees and credit support in the market means that clearing the market, particularly at this size and speed, probably requires it, just as wrappers, insurance or guarantees get car and airplane deals done faster and at better…
What would change the Call
A change in who Meta judges controls the venture, or payment becoming probable, would trigger consolidation or a liability.
The Call · Part 17
Leases pile up faster than they start, Alphabet's backstops cost more to carry, and Oracle's cash leans on its customers' prepayments.
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The Part
The Guarantee Has No Date
By mid-2026 the five largest builders of AI data centers had signed $1.12 trillion of leases not yet begun, by DeepStack's sum of their filings, 69% more than Moody's counted at the end of 2025. The leases reach the balance sheet on a schedule. The guarantees beside them have no date.