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Meta Eyes $29 Billion from Private Credit Giants to Power AI Expansion

Meta Platforms is seeking to raise $29 billion from private credit firms in one of the largest capital-raising efforts of its kind. The funds will be used to supercharge the company’s AI ambitions through large-scale data centre developments across the United States.

Breakdown of the Capital Strategy

According to sources familiar with the matter, Meta is in advanced talks with leading asset managers including Apollo Global Management, Brookfield, KKR, Carlyle, and Pimco. The plan is to secure $3 billion in equity and $26 billion in debt to back its AI infrastructure buildout.

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Meta, working with Morgan Stanley, is considering structuring the debt to make it more tradable — a key concern for potential investors due to the size of the deal.

Racing to Lead in AI

CEO Mark Zuckerberg has intensified efforts to claim leadership in artificial intelligence after Meta’s recent AI models — including Llama 4 and “Behemoth” — failed to meet expectations. The company recently committed $15 billion to ScaleAI and hired its CEO, Alexandr Wang, to lead a new “superintelligence” unit.

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Meta is also aggressively recruiting top talent, reportedly offering sign-on bonuses up to $100 million to lure engineers from competitors like OpenAI.

Growing AI-Related Investments

In May, Meta increased its 2024 capital expenditure forecast to between $64 billion and $72 billion. The increase reflects rising infrastructure costs and expanded AI-related investments, including nuclear and renewable energy deals to power data centres.

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Earlier this month, Meta agreed to purchase nuclear power output from an Illinois plant for 20 years and struck four clean energy deals with Invenergy.

Private Capital’s Role in Big Tech Infrastructure

Private investment groups are increasingly becoming key backers of AI infrastructure. For instance, Blue Owl recently committed funding to a $15 billion joint venture to support OpenAI’s data centre construction in Texas. Meta follows this trend, relying on private financing to avoid burdening its balance sheet — a strategy also used by Intel, which secured $11 billion from Apollo last year for its chip fabrication plants in Ireland.

Structuring the Deals

These large-scale deals are often structured as special purpose vehicles (SPVs) or joint ventures. Asset managers typically acquire a significant minority stake, while companies like Meta contribute assets in exchange for capital.

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The financing structures allow companies to keep the associated debt off their balance sheets, preserving credit ratings while accessing large sums of private capital.

Conclusion

As AI arms races escalate, Meta’s unprecedented $29 billion private capital bid signals a shift in how blue-chip tech giants fund transformative infrastructure. With deep-pocketed firms like Apollo and Brookfield at the table, Meta is positioning itself to compete aggressively in the next era of artificial intelligence.

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