After Alphabet Inc. Class C (GOOGL.US), Meta (META.US) is considering a stock financing of several hundred billion US dollars to meet AI capital expenditure needs.

Meta is actively exploring large-scale equity financing to support its massive capital spending plan in the field of artificial intelligence. This is the latest trend in the wave of tech giants seeking funding sources for AI infrastructure. According to the Financial Times, Meta executives are discussing the possibility of issuing new shares worth hundreds of billions of dollars to fund AI-related capital expenditures reaching as high as $145 billion this year and even higher in 2027. Following Alphabet, Google's parent company, completing a record $85 billion equity financing this week, internal discussions at Meta have noticeably accelerated. Alphabet's transaction was upsized by $5 billion due to strong investor demand. Meta denies the reports, with a spokesperson stating that the discussions on stock financing are purely speculative. However, they also mentioned, "We have always stated that there is a huge opportunity in the AI field, and we will continue to raise capital in the most flexible way to support this direction." This statement leaves room for interpretation. Currently, the U.S. equity capital market is experiencing a historic period of activity. Elon Musk's SpaceX is planning to complete an IPO next week with a valuation of up to $860 billion, while Anthropic and OpenAI are also preparing for large-scale listings. If Meta decides to act, timing is crucial. During trading, Meta's stock briefly fell by 6.6%. Alphabet's financing showcased, Meta speeds up internal discussions According to sources, Meta has studied the structure design of Alphabet's financing scheme, including "mandatory convertible preferred stock issuance." This tool allows companies to raise cash immediately while delaying the formal issuance of stocks for several years, reducing immediate dilution for existing shareholders while balancing financing efficiency. Leading this potential stock financing discussion are Chief Financial Officer Susan Li and Dina Powell McCormick, who transitioned from Meta's board of directors to the role of president in January to play a more active executive role. Powell McCormick has been tasked with restructuring Meta's AI infrastructure financing methods, focusing on long-term planning as Meta enters its most capital-intensive phase in its history. In terms of potential underwriters, given Powell McCormick's 16-year tenure at Goldman Sachs, which led Alphabet's deal this week, the market generally believes Goldman Sachs is in a favorable position to compete for Meta's business this time. However, sources caution that it is "too early to make judgments" on whether Meta has made a decision. All financing options are still being considered, and the company has not yet formally hired a bank. Debt first, equity financing next steps Meta's demand for capital is not sudden. The company's long-term debt was less than $10 billion in 2022, but in recent months, it has borrowed $55 billion through a series of cross-border transactions. One of the most interesting transactions was a $27 billion bond issuance in partnership with Blue Owl, a private equity firm, last October, to build a massive data center code-named "Hyperion" in Louisiana. At the same time, Meta is taking multiple steps to save capital: last month, it laid off 8,000 employees and stopped recruiting for 6,000 positions; by the end of 2025, it also halted its stock repurchase plan that had been ongoing since 2017. Analysts point out that other tech giants, including Microsoft and Amazon, may be considering similar stock financing moves as data center spending increases and investors begin to scrutinize balance sheet pressures. AI infrastructure arms race, timing crucial for financing window The core narrative driving all of this is Mark Zuckerberg's grand vision of "personal superintelligence"providing users with Facebook, WhatsApp, and Instagram, extending to a range of AI wearable devices such as smart glasses and voice pendants. The large-scale data centers needed to train and run cutting-edge AI models constitute the most direct and substantial capital burden of this vision. In terms of market timing, Meta executives are well aware that they must act quickly. Currently, market funds and investors' attention are highly competitive, leaving Meta with a narrow window of time. The current U.S. public market is experiencing a historic trading frenzy: SpaceX is planning to complete an IPO with a valuation of up to $860 billion and a market capitalization of $1.78 trillion; Anthropic has secretly submitted a listing application; OpenAI is also preparing for a listing, with both expected to raise billions of dollars in funding, potentially surpassing a $1 trillion valuation. This article is compiled from "Wall Street See News," author: Yang Chen; GMTEight Editor: He Yucheng.