Mark Zuckerberg's Meta plans to raise up to $95bn by selling new shares to fund its AI spending spree
Mark Zuckerberg, Meta's chief executive, plans to sell $95bn of new stock to fund the company's AI ambitions as smaller rivals face collapse amid tightening credit in September.Elon Musk has warned that more than 200 neoclouds face collapse as debt markets pull funding from artificial intelligence start-ups.
Meta has not issued new stock since 2013, but it burned through $2.12bn more cash than it brought in last quarter while capital spending hit $34.91bn. Morgan Stanley and Goldman Sachs will lead public offerings to raise an initial $35bn, with a further $60bn potentially following from early 2027. New non-voting Class C shares mean Mark Zuckerberg keeps his grip on the company.
Chipmakers Nvidia, AMD and Broadcom may buy up to $5bn of the new stock.
Elon Musk warned AI data-centre firms face 'death and consolidation' while funding dries up.
Meta expects to spend up to $145bn on capital projects this year alone.
