Symbolic imageMeta plans $95bn equity raise as AI funding fears hit neocloud stocks
Meta plans to raise up to $95bn in equity to fund its AI buildout, while debt worries hit AI cloud stocks.
Handelsblatt reports from Wall Street on Monday, 26 October that Meta plans to raise roughly $95bn: about $22.5bn in Class A shares, $12.5bn in preferred shares and around $60bn through a later at-the-market program of new non-voting Class C shares. According to the briefing, Meta expects AMD, Broadcom and Nvidia could each take up to $5bn of the Class A shares. The sum is well above the $40bn to $50bn discussed recently, which Handelsblatt reads as a sign that Meta is accelerating its AI plans. It could also signal a shift in AI financing from debt toward equity, easing pressure on the bond market but sharpening competition for investor money.
Neocloud stocks slide
Reuters reports that a warning from Musk hit neocloud stocks as debt concerns mounted; Musk warned of "guppy-level death" for AI cloud firms. Bloomberg calls the CoreWeave rout a warning sign for the wider stock market and says Bitcoin dipped below $80,000 as the AI-related selloff deepened.
SpaceX lines up chip financing
SpaceX agreed a $40bn chip-financing deal with Apollo for AI chips, according to Bloomberg and Reuters.