Meta Seeks $29 Billion Including $3B Equity, $26B Debt From Apollo, KKR to Fund AI Data Centers Amid OpenAI Competition

Meta Platforms is seeking to raise $29 billion from private capital firms to finance the construction of artificial intelligence data centers across the United States. The funding plan includes raising $3 billion in equity and $26 billion in debt, with major private credit firms such as Apollo Global Management, KKR, Brookfield Asset Management, Carlyle Group, and Pimco involved in the talks. This capital raise is part of Meta's strategic push to expand its AI infrastructure amid intensifying competition from rivals like OpenAI and Google. The company aims to accelerate its AI capabilities following challenges with its LLaMA 4 model and delays in its "Behemoth" project, while also recruiting top talent from competitors. Despite the aggressive expansion, some analysts have raised concerns about Meta's strategy diffusion, labor cost risks, and potential capital inefficiencies. Needham recently upgraded Meta's stock rating to Hold from Underperform, citing labor productivity strength and upside to estimates but cautioning about regulatory risks and capital waste.