Meta Stock Falls 6% on Plan to Raise Tens of Billions for AI Buildout
META•Meta shares fell 6% after reports it plans to sell tens of billions in new stock to fund its AI infrastructure buildout. The company is spending billions on chips, data centers and the $14 billion Scale AI acquisition while testing the Muse Spark AI model and Meta One subscription bundles.
1. Stock Decline After Equity Sale Reports
Meta shares fell more than 6% following reports that the company is considering a new equity offering to raise tens of billions of dollars for its expanding AI infrastructure, marking one of the largest potential share deals in the sector.
2. Massive AI Infrastructure Spending
The planned capital raise would support CEO Mark Zuckerberg’s goal of scaling AI chip and data center investments, joining peers expected to spend over $720 billion on AI-related infrastructure in 2026 and boosting Meta’s own AI capex to about $145 billion this year.
3. AI Model Launches and Delays
Meta delayed the release of its Llama 4 Behemoth API after shelving the model but debuted the Muse Spark AI model in April as part of its renewed focus on advanced AI capabilities.
4. Exploring New Revenue Streams
To offset hefty AI spending, Meta is testing subscription bundles under its Meta One umbrella for Instagram, WhatsApp, Facebook and AI services, and has teased a future Meta cloud computing platform to diversify revenue sources.
