Meta Platforms (META, Financial) is in advanced discussions with major private equity firms, including Apollo Global Management, KKR, Brookfield, Carlyle, and Pimco, to raise up to $29 billion. This funding aims to significantly expand its AI data centers in the United States, marking a strategic push into artificial intelligence.
The company plans to secure $3 billion in equity and $26 billion in debt, potentially making it one of the largest private financing deals of its kind. This move comes as Meta accelerates its AI investments, having previously lagged behind competitors. Its language model, Llama 4, and the flagship model "Behemoth" have not met expectations, prompting further investment in AI capabilities.
Recently, Meta announced a $15 billion investment in ScaleAI, a data annotation startup, and recruited Scale's CEO, Alexandr Wang, to lead a new "superintelligence" team. Additionally, three top OpenAI researchers have joined Meta, with CEO Mark Zuckerberg reportedly offering $100 million signing bonuses for engineers.
Meta's capital expenditure forecast for the year has increased by up to 10%, reaching $64 to $72 billion, driven by AI data center investments and rising infrastructure costs. The company has also signed a 20-year agreement to purchase power from an Illinois nuclear plant and partnered with Invenergy on four clean energy projects.
