Financial Times: Meta plans to issue "billions of dollars in new shares" to expand AI infrastructure, following Alphabet's fundraising frenzy

Latest market news indicates that tech giant Meta is considering a massive stock issuance worth hundreds of billions of dollars to support its aggressive AI infrastructure expansion plans. Previously, Alphabet completed a record-breaking $85 billion stock financing, demonstrating the extremely capital-intensive nature of the global AI computing race, even for cash-rich tech giants who must turn to external markets for large-scale funding.
(Background: Bill Ackman warns: The market blindly chasing AI is "repeating the 2000 Internet bubble," with high-quality assets like Microsoft and Amazon being abandoned)
(Additional context: Meta is stuffing AI chips into tents: building data centers six times faster than traditional methods in half a year, learning from Tesla and xAI)

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• Capital expenditure soars, Meta’s 2026 budget reaches $145 billion
• Alphabet breaks record with $85 billion fundraising, acting as a market catalyst
• Dilution risks raise concerns, AI monetization capabilities become a focus

The global AI arms race has entered a fever pitch, with insatiable demand for computing resources and data centers forcing tech giants to readjust their capital strategies. According to the latest report from the Financial Times, Meta Platforms (META) is actively considering launching a multi-billion-dollar stock issuance plan to fund its aggressive AI infrastructure development.

Capital expenditure soars, Meta’s 2026 budget reaches $145 billion

Behind this potential massive financing plan is Meta’s unprecedented investment in AI. To meet the enormous computing demands, rising component costs, and data center construction, Meta has recently significantly raised its 2026 capital expenditure (CapEx) guidance to between $125 billion and $145 billion. This figure represents a substantial jump from the previous $115 billion to $135 billion range, occupying a large portion of the company's revenue.

In fact, Meta has already begun raising funds through multiple channels. In April 2026, the company issued bonds totaling up to $25 billion, and through private credit and debt financing involving institutions like Pimco, Blue Owl, and Apollo, it raised about $29 billion. These funds are mainly invested in joint ventures or off-balance-sheet structures for data center construction. However, given the huge costs of GPUs, power, and hardware facilities, debt financing alone is insufficient, and Meta must seek equity financing to avoid over-leveraging its balance sheet.

Alphabet breaks record with $85 billion fundraising, acting as a market catalyst

Another major catalyst for Meta’s consideration of issuing new shares comes from a successful precedent set by its industry peer. Google’s parent company Alphabet recently completed a record-breaking $85 billion stock financing (expanded from an initial target of $80 billion), with extremely strong market demand, including a $10 billion private placement involving Berkshire Hathaway.

Alphabet’s success has undoubtedly injected confidence into the entire tech industry, proving that there is still strong appetite for large-scale fundraising to support AI infrastructure. It is understood that after Alphabet’s deal was completed, discussions within Meta about issuing shares became more heated. However, sources also indicate that no investment bank has yet been officially hired to participate in Meta’s potential issuance, and options such as issuing more debt or expanding joint ventures remain on the table.

Dilution risks raise concerns, AI monetization capabilities become a focus

Although Meta’s core advertising business (spanning Facebook, Instagram, Threads, and WhatsApp) remains strong, providing solid cash flow buffers, the massive and ongoing AI expenditure has raised some market concerns. Investors worry that new share issuance could lead to dilution effects, and are sensitive to the rising capital costs associated with AI investments. As a result, META’s stock price has recently come under significant pressure.

This event reflects the enormous capital demands of the AI race. Currently, industry-wide capital expenditure on chips, power, and facilities has soared into the hundreds of billions of dollars, forcing even the wealthiest tech giants to frequently test the depth of equity and debt markets. For Meta, the key will be demonstrating execution—how to turn these massive infrastructure investments into tangible profits by improving recommendation algorithms, launching new AI tools, or realizing ambitions of superintelligence.