Meta Platforms is considering raising fresh capital through an equity issuance worth tens of billions of dollars as it seeks financing for Mark Zuckerberg’s large-scale artificial intelligence (AI) plans. According to three people familiar with the matter who spoke to the Financial Times, the company’s leaders have been exploring “creative” ways to raise funds.
The prospect of a share sale gained momentum after Alphabet — Google’s parent company — executed a record $85 billion equity deal this week, which was expanded by a further $5 billion because of strong investor demand.
Why Meta is looking for new capital
Meta could increase its AI-related investment spending to as much as $145 billion this year, and the sources say it may plan to spend even more by 2027. The company needs new financing options to build the large data centers and infrastructure required to train and operate advanced AI models — the backbone of Zuckerberg’s vision for a “personal superintelligence” delivered via Facebook, WhatsApp and Instagram, as well as AI-enabled wearables.
Market backdrop and competition
Talks about a possible Meta share sale are taking place during a very active period for U.S. equity markets. Other major players are also pursuing large capital raises: Elon Musk’s SpaceX is preparing a high-profile initial public offering (IPO), while AI firms Anthropic and OpenAI are working on Wall Street listings. Both AI companies are expected to raise tens of billions of dollars and could reach valuations above $1 trillion.
SpaceX’s IPO could raise as much as $86 billion and value the company at about $1.78 trillion. Analysts say Microsoft and Amazon may also consider similar moves as the costs of their data‑center investments rise sharply.
Meta’s prior financing moves
Meta has already turned to novel financing structures. In 2022 its long‑term debt was under $10 billion, but in recent months it has taken on about $55 billion of loans through global transactions. In October last year it raised $27 billion via a bond issuance through a joint venture with private equity firm Blue Owl to build a Manhattan‑sized “Hyperion” data center planned for Louisiana.
Risks, timing and internal deliberations
Meta has not yet hired banks to run a potential transaction, and sources caution the company could ultimately decide not to issue new shares. Management recognizes that if it moves ahead with an equity sale it would need to act quickly to take advantage of investor appetite and market capacity amid the historically active U.S. capital markets.
Market reaction has already been visible: Meta shares fell about 7 percent during Friday’s U.S. trading and closed down 5.5 percent; the decline accelerated after the Financial Times reported on the possible share issuance.
Cost cutting and other measures
Meta is also preserving financial flexibility through cost reductions: last month it laid off 8,000 employees and froze hiring for about 6,000 positions. The company has suspended its share‑buyback program through the end of 2025, a program it had run regularly since 2017.
Google likewise paused its buyback program in the first quarter after repurchasing roughly $45 billion of its own stock last year, according to FactSet data and corporate filings.
