Meta stock tumbled 7% on Friday after the Financial Times reported the company is considering a major equity raise to fund its artificial intelligence infrastructure, marking another setback for the social media giant’s aggressive AI spending strategy.
The Facebook parent is exploring the possibility of selling tens of billions of dollars in new stock to finance its AI ambitions, according to the report. Finance Chief Susan Li and President Dina Powell McCormick are leading the discussions, though the plans remain in early stages with no banks hired yet and Meta keeping all financing options open.
Meta’s AI-related capital expenditures are expected to reach $145 billion this year and increase further in 2027. The potential capital raise would support CEO Mark Zuckerberg’s goal of delivering “personal superintelligence” across Meta’s platforms, including Facebook, WhatsApp, Instagram, and wearable devices. The company’s discussions about an equity offering intensified after Alphabet successfully launched a record $85 billion share deal, capitalizing on strong investor demand.
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The decline in Meta shares came amid broader pressure on the Nasdaq, with losses accelerating throughout the trading session. The potential stock offering would represent one of the largest equity raises in recent years as technology companies race to fund expensive AI infrastructure and data centers.
Sources
- Investing.com — Meta stock decline on reported equity raise and AI funding plans, Finance Chief Susan Li and President Dina Powell McCormick leading discussions, $145 billion 2026 capex guidance, and Alphabet’s $85 billion share deal
