Meta Platforms Inc. (META, Financial) is in discussions with Apollo Global Management to secure approximately $350 billion in funding. This capital is intended to support Meta's ambitious U.S. data center expansion, as part of a broader $65 billion investment plan for the year. The focus of this investment is on AI projects, data center development, and chip procurement, with a target of achieving 1 gigawatt of computing power by 2025.
The negotiations are still in the early stages, and there is no certainty that a deal will be finalized. Apollo Global Management, known for its significant investments in large-scale corporate credit, is expected to lead the funding effort, distributing the remaining portions to other investors.
Meta's CEO, Mark Zuckerberg, announced the company's plans to heavily invest in AI-related projects, including constructing new data centers and expanding its AI workforce. The company also aims to invest $10 billion in a new data center in Louisiana and procure next-generation computing chips. Previously, Meta was reported to be planning a $200 billion mega data center project.
The race to build AI infrastructure is driving massive financial commitments from tech giants. Microsoft, for example, is investing $80 billion in data centers this fiscal year to meet the soaring demand for AI capabilities. The financial sector is keen to participate in this AI boom, anticipating lucrative returns as the market rewards key players in the AI ecosystem.
