Meta Eyes $29 Billion AI Infrastructure Push in Landmark Private Capital Deal

June 28, 2025

Meta Platforms Inc., the parent company of Facebook, Instagram, and Threads, is reportedly in advanced discussions with major private capital firms to raise up to $29 billion to fuel its ambitious expansion into artificial intelligence (AI) infrastructure.

According to a report by Financial Times, Meta is engaging heavyweight private credit investors such as Apollo Global Management, KKR, Brookfield, Carlyle, and Pimco as part of a fundraising campaign that, if finalized, would become one of the largest private capital deals in tech history.

A Two-Tier Fundraising Strategy

Meta’s fundraising plan is twofold:

• $3 billion in equity funding

• $26 billion in structured debt

The capital will be used to build next-generation data centers across the United States, designed specifically to support the high computational demands of training and deploying AI models.

Meta is working closely with Morgan Stanley, which is advising on how to structure the debt in a way that makes it more liquid and tradeable, a key concern among investors wary of tying up capital in such a large-scale transaction.

Meta’s Bold AI Bet

This aggressive capital raise signals Meta’s full-throttle commitment to AI as it battles industry rivals OpenAI, Google, Amazon, and Microsoft in what has become the defining tech arms race of the decade.

CEO Mark Zuckerberg has made it clear that AI is the company’s long-term future. In May 2025, Meta increased its capital expenditure guidance for the year to $64–$72 billion, driven largely by AI-related infrastructure spending.

Despite setbacks—including underwhelming results from its LLaMA 4 large language model and delays in its upcoming “Behemoth” AGI project—Meta is doubling down:

• In May, Meta invested $15 billion in AI data labeling startup ScaleAI

• ScaleAI founder Alexandr Wang was appointed to lead Meta’s new superintelligence team

• Zuckerberg has reportedly offered sign-on bonuses of up to $100 million to lure AI engineers away from top competitors like OpenAI

• Meta has entered into a 20-year power purchase agreement for energy from an Illinois nuclear plant, a first-of-its-kind deal to power its AI workloads

• The company has signed four more clean energy deals with renewable energy developer Invenergy

A Shift in Silicon Valley Financing Strategy

Meta’s move also reflects a growing trend among tech giants seeking private credit to finance capital-heavy AI ventures—without burdening their balance sheets or triggering investor concern over public market dilution.

This strategy has gained popularity across the AI landscape:

• OpenAI recently secured funding from Blue Owl Capital for a $15 billion data center venture in Texas

• It is also working with SoftBank and Oracle on a $500 billion AI infrastructure project, one of the largest of its kind

By turning to private capital markets, Meta is looking to scale quickly while maintaining operational flexibility and avoiding the regulatory scrutiny that might come with public debt issuance.

What’s at Stake?

Meta’s pivot toward AI is more than a strategic diversification—it’s a survival strategy. The company has seen stagnation in its core social media revenue and is under pressure to remain relevant in a fast-moving tech world dominated by advancements in generative AI and machine learning.

While its LLaMA AI models have struggled to compete with the likes of OpenAI’s GPT-4 or Google’s Gemini, Meta is betting that with the right infrastructure, talent, and financing, it can leapfrog its rivals and become a global leader in artificial general intelligence (AGI).

Final Word

If Meta successfully raises the $29 billion in private funding, it would mark a new chapter not just for the company, but for the financing model of AI innovation itself. With Wall Street money backing Silicon Valley dreams, the race for AI supremacy is no longer just about algorithms—it’s about capital, infrastructure, and geopolitical influence.

And with CEO Mark Zuckerberg going all-in, one thing is clear: Meta doesn’t plan to be left behind.

“AI is our future. We’re investing now to shape it,” Zuckerberg said in a recent internal memo.

Stay tuned as this developing story continues to reshape the intersection of technology, finance, and global competition.