On June 6, the Financial Times reported that Meta Platforms is contemplating a stock issuance to raise billions of dollars, bolstering Zuckerberg's visionary pursuits in artificial intelligence (AI). This move follows closely on the heels of Alphabet, Google's parent company, which just concluded a record-breaking stock transaction valued at $85 billion earlier this week.
Three sources with insider knowledge disclosed that Meta's top brass have been delving into 'innovative' financing strategies. This exploration comes as the tech giant plans a substantial hike in its AI-related capital expenditures this year, with projections soaring up to $145 billion, and even higher increases anticipated by 2027.
The successful fundraising endeavor by Alphabet, coupled with a $5 billion boost to the original financing plan due to overwhelming investor interest, has sparked intensified discussions within Meta. However, it's noteworthy that Meta has not yet engaged investment banks for this purpose, and there remains a possibility that the company may opt against issuing new shares altogether.
Some sources advise caution, noting that it is premature to draw definitive conclusions about Meta's financing strategy, as all potential avenues are still under active consideration.
