TLDR
- Meta is seeking up to $29 billion in financing ($3 billion equity, $26 billion debt) from private equity giants to fund AI initiatives
- The company continues poaching OpenAI researchers, with four more executives joining Meta’s Superintelligence team
- Meta plans to invest up to $72 billion in capex this year for AI data centers and infrastructure
- Analysts see Meta as the potential “next Nvidia” due to AI’s ability to transform its advertising business through better user targeting
- META stock has gained 25.5% year-to-date and holds a Strong Buy rating from analysts
Meta Platforms is making aggressive moves to catch up in the artificial intelligence race. The social media giant is seeking $29 billion in new financing while continuing to recruit top talent from OpenAI.
According to The Financial Times, Meta is in discussions with major private equity firms for this massive funding round. The company plans to raise $3 billion in equity financing and an additional $26 billion in debt.
$META PLANS $29B AI DATA CENTER BUILDOUT WITH PRIVATE CAPITAL BACKING — ACCELERATES PUSH INTO AI INFRASTRUCTURE WITHOUT DILUTING EQUITY pic.twitter.com/d2DMtVi6GG
— Value Sense (@ValueSense_io) June 28, 2025
Apollo Global Management, KKR & Co., Carlyle Group, and PIMCO are among the firms in talks with Meta. Sources indicate the parties are working on structuring the debt to make it easily tradeable once issued.
A person familiar with the matter said Meta could seek even more capital in the future. This funding push comes as Big Tech companies race to capture larger shares of the AI market.
Meta has been playing catch-up in generative AI despite developing its own models called Llama. The company recently announced a $14.3 billion investment in AI data-labeling startup Scale AI.
The Instagram parent company tapped Scale AI CEO Alexandr Wang to lead its new Superintelligence team. CEO Mark Zuckerberg is personally conducting interviews and overseeing hirings for this critical division.
Talent War Heats Up
Meta’s talent acquisition strategy is paying off with another wave of OpenAI defections. Four more research executives have accepted Meta’s multi-million-dollar compensation offers.
Shengjia Zhao, Jiahui Yu, Shuchao Bi, and Hongyu Ren are the latest to leave the ChatGPT maker. Yu previously led OpenAI’s Perception team while the others served as key researchers.
This follows last week’s hiring of Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai from OpenAI’s Zurich office. Meanwhile, OpenAI has acquired the full team from Crossing Minds, a startup focused on AI recommendation tools.
The hiring spree reflects Meta’s determination to build world-class AI capabilities. The company plans to invest up to $72 billion in capital expenditures this year for AI data centers and infrastructure.
Meta has also partnered with nuclear power and geothermal plants to supply clean energy for its data centers. This infrastructure investment is crucial for training and running advanced AI models.
The Next Nvidia Potential
Some analysts believe Meta could become the “next Nvidia” in the AI revolution. Since ChatGPT’s launch in November 2022, Meta shares have gained over 500%.
The company’s advertising business stands to benefit from AI improvements. Better algorithms could deliver more relevant ads to users across Facebook, Instagram, and WhatsApp.
Enhanced targeting capabilities would make advertisers more likely to spend on Meta’s platforms. This could lead to pricing power and accelerated revenue growth for the social media giant.
Market Performance
META stock has gained 25.5% year-to-date and trades at a price-to-earnings ratio of 28. Analysts maintain a Strong Buy consensus rating on the stock.
The average price target of $720.24 suggests limited downside from current levels. Forty-two analysts rate the stock a Buy, three have Hold ratings, and one recommends Sell.
Meta’s current market capitalization reflects investor confidence in its AI transformation strategy. The company’s massive funding round and talent acquisitions signal serious commitment to competing with industry leaders.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
