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Meta AI Funding: Meta shares fell more than 5% on Friday following a report that the company is considering a major stock offering to support its growing investments in artificial intelligence.
According to the Financial Times, Meta is evaluating the possibility of raising tens of billions of dollars through an equity sale.
The move would help finance the company’s expanding AI initiatives as competition intensifies across the technology sector.
The report comes shortly after Alphabet announced plans to raise $85 billion through a stock offering.
The Google parent company increased its fundraising target from a previously announced $80 billion.
While Alphabet has posted strong gains over the past year, its shares have declined for a fourth consecutive week.
Investors have expressed concerns about the rising costs associated with large-scale artificial intelligence spending.
The latest developments highlight the growing financial commitments major technology companies are making as they race to strengthen their positions in the rapidly evolving AI market.
Meta has not hired investment banks for a potential stock offering and may ultimately decide against issuing new shares, according to a report by the Financial Times.
The company pushed back against the report, with a Meta spokesperson describing it as “pure speculation.”
In a statement provided by email, the spokesperson said Meta remains focused on supporting its long-term artificial intelligence strategy through flexible financing options.
The spokesperson added that the company has consistently highlighted the significant opportunities emerging in the AI sector and will continue evaluating the most effective ways to secure capital when needed.
Meta is among several major technology companies significantly increasing spending on infrastructure tied to artificial intelligence.
Alongside Alphabet and other industry leaders, the company is committing record levels of capital expenditure as competition intensifies in the race to expand AI capabilities.
Technology firms have accelerated investments in data centers, computing power, and related infrastructure to meet what they believe will be sustained and growing demand for AI services.
Meta increased its 2026 capital expenditure forecast in April, raising the upper end of its guidance to $145 billion from a previous estimate of $135 billion.
During the same month, Alphabet also expanded its spending plans.
The company increased the top end of its capital expenditure outlook by $5 billion, bringing the total projected investment to $190 billion.
The higher spending targets reflect the growing financial commitments major technology companies are making to expand artificial intelligence infrastructure and capabilities.
Despite similar investment strategies, Wall Street has responded differently to the two companies over the past year.
Investors have generally been more supportive of Alphabet’s aggressive spending due to the strength of its cloud computing business, which continues to generate significant growth and revenue.
Alphabet’s shares have gained more than 115% over the past 12 months, outperforming other megacap technology companies during that period.
Meta, by contrast, has faced greater investor skepticism.
The company’s stock has declined approximately 13% over the same timeframe, making it the weakest performer among its large-cap technology peers.
The contrasting stock performances underscore how investors are weighing the potential returns of massive AI-related investments across the technology sector.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
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