Meta considers AI equity raise in Google’s wake: FT
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The news: Meta executives are considering selling tens of billions of dollars in stock to fund AI infrastructure projects, in the wake of Google-parent Alphabet’s $85 billion share deal announced this week, according to reports.
The numbers: Meta is exploring ways to fund its AI spending, which could reach up to USD145 billion this year, and higher in 2027, the Financial Times reported.
Alphabet’s initial equity raise was set at USD80 billion, before strong investor demand led the company to upsize the sale to USD85 billion, creating the the biggest ECM transaction of all time.
The context: Meta’s consideration of a share sale comes off the back of intense market activity as Anthropic confidentially filed for a US initial public offering and Elon Musk’s SpaceX plans to hold its IPO next week.
Meta hasn’t hired banks and may not issue new stock, with one person telling the FT it would be premature to say such a decision had been reached and all financing options remain on the table.
The source: FT
