Meta Seeks $29 Billion in Private Capital to Build AI Data Centers
Meta Platforms is in advanced talks to raise $29 billion from private capital firms to fund the development of artificial intelligence (AI) data centers across the United States, as reported by the Financial Times.
The funds will help the company strengthen its AI infrastructure, positioning it to compete more effectively with rivals like OpenAI and Google in the rapidly evolving AI sector.
Capital Structure and Partners
According to a report by the Financial Times, Meta is looking to raise $3 billion in equity and $26 billion in debt, with discussions involving major private credit investors such as Apollo Global Management, KKR, Brookfield, Carlyle, and PIMCO.
While the exact debt structure is still under consideration, Meta may also seek to raise additional capital, depending on the outcome of ongoing negotiations.
Meta’s AI Ambitions and Investments
This funding initiative aligns with Meta’s broader commitment to advancing AI technology. The company, under CEO Mark Zuckerberg, has announced plans to invest up to $65 billion in AI infrastructure this year alone.
This is part of its strategy to bolster its capabilities in AI, following significant investments, including a $14.8 billion commitment to startup Scale AI. Meta’s AI ambitions are part of a larger trend in the tech industry, with major players investing heavily in the computing power necessary to run complex AI models.
Tech Industry’s Growing Demand for AI Infrastructure
According to the Financial Times, Meta’s push for AI data centers comes as companies in the tech sector face growing demand for specialized infrastructure to support the computing needs of AI models. These data centers link thousands of chips into high-performance clusters, capable of handling the massive workloads associated with AI services.
For example, Microsoft has planned $80 billion in capital expenditure for fiscal 2025, with a large portion of the funds earmarked for expanding its data center operations to address AI capacity bottlenecks.
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Meta is working with advisers at Morgan Stanley to arrange the financing, and the company is considering options to make the debt more tradable once issued. The involvement of top private equity and credit firms underscores the importance of this funding round, as the demand for AI infrastructure continues to soar. However, the financing package is still in the discussion stages, and a final decision on the debt structure is expected in the near future.
