Meta Eyes $29 Billion in Private Capital to Fund AI Infrastructure Expansion
Meta Platforms Inc., the parent company of Facebook and Instagram, is making a bold play in the artificial intelligence (AI) race by seeking up to $29 billion in private capital. The funds will be used to develop next-generation AI infrastructure, including advanced data centres across the United States.
According to a report from the Financial Times, Meta is in advanced discussions with major private credit investors such as Apollo Global Management, KKR, Brookfield, Carlyle, and Pimco. The financing round, structured with assistance from Morgan Stanley, will consist of $3 billion in equity and $26 billion in debt, making it one of the largest private capital raises ever in the tech industry.
Why Meta Is Betting Big on AI
This move highlights Meta’s aggressive strategy to become a global AI leader, competing with top players like OpenAI, Google, and Microsoft. CEO Mark Zuckerberg has already announced a sharp increase in capital expenditure for 2025, projecting a range of $64 billion to $72 billion, mostly earmarked for data centres, AI chips, and infrastructure to power large language models (LLMs).
Despite growing excitement around Meta’s Llama AI models, the company has encountered performance setbacks. Its Llama 4 model underperformed, and the much-anticipated “Behemoth” AI model has faced development delays.
To regain momentum, Meta recently:
- Invested $15 billion in ScaleAI, an AI data labelling startup
- Appointed Alexandr Wang, ScaleAI’s CEO, to lead a new superintelligence division focused on Artificial General Intelligence (AGI)
- Launched an aggressive recruitment drive, offering up to $100 million in signing bonuses to attract top AI engineers, including talent from OpenAI
Energy Strategy for Power-Hungry AI Systems
Recognising the enormous energy demands of AI infrastructure, Meta has signed long-term power deals, including:
- A 20-year nuclear power purchase agreement in Illinois—the company’s first nuclear energy deal
- Four renewable energy agreements with Invenergy, a clean energy developer
These strategic moves ensure a sustainable power supply for Meta’s growing AI ambitions.
Making Debt Tradeable and Investor-Friendly
Meta is reportedly working with Morgan Stanley to structure the debt component of the deal in a more liquid and tradable format, addressing concerns from potential investors wary of the scale and complexity of the transaction. If finalised, the financing deal would be one of the largest private capital raises in the AI industry, potentially reshaping how major tech players fund infrastructure development.
Private Capital’s Growing Role in the AI Race
Meta’s strategy aligns with a broader trend of private capital firms backing AI infrastructure projects, allowing tech companies to scale without heavily impacting their balance sheets.
Recent examples include:
- Blue Owl Capital’s $15 billion data centre JV with OpenAI in Texas
- OpenAI’s collaboration with SoftBank and Oracle on a proposed $500 billion AI infrastructure mega-project
These developments reflect how private investment is powering the future of AI, helping accelerate innovation without the constraints of traditional corporate finance.
As Meta intensifies its focus on AI dominance, this unprecedented $29 billion capital raise could play a defining role in shaping the future of AI infrastructure, data centre scalability, and global tech leadership. With Zuckerberg’s high-stakes gamble, Meta is betting that AI will be the cornerstone of the next digital revolution.
