Meta Weighs Tens of Billions in Stock Sale for AI as Shares Fall 7%
Updated
Updated · Financial Times · Jun 5
Meta Weighs Tens of Billions in Stock Sale for AI as Shares Fall 7%
3 articles · Updated · Financial Times · Jun 5
Summary
Meta is exploring a stock offering worth tens of billions of dollars to help fund AI expansion, though it has not hired banks and may still choose another financing route.
Up to $145 billion in 2026 capital spending — with more expected in 2027 — is driving the search for cash as Meta builds data centers and infrastructure for Zuckerberg’s AI push.
Alphabet’s $85 billion equity deal, enlarged by $5 billion after strong demand, intensified Meta’s talks, with executives studying structures such as mandatory convertible preferreds.
Meta shares fell about 7% after the report, underscoring investor unease over heavy AI spending even as the company has already borrowed $55 billion, cut 8,000 jobs and halted buybacks.