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Meta sought $95B in stock as SpaceX raised $40B in debt
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[QUOTE="Shamiso, post: 93893, member: 160"] Meta is seeking up to $95 billion from investors, while Elon Musk's SpaceX has secured $40 billion in loans for AI chips. Both firms want more cash to build out their tech as doubts grow over the cost of AI. Meta plans to sell $35 billion in regular stock and $60 billion in shares with no voting rights. The setup lets Mark Zuckerberg keep his grip on key shareholder calls while the firm gets funds for growth, staff pay, and deals. And there is a twist. Nvidia, AMD, and Broadcom may buy $5 billion worth of Meta stock. These chip firms also sell tech to the same AI players they may fund, which has led critics to question how closely their money ties are linked. Meta, the parent of Facebook, Instagram, and WhatsApp, sees a tight race for investor cash. Alphabet, OpenAI, SpaceX, and Anthropic are all after funds for similar goals. With more firms seeking huge sums, the pool of willing backers could face a real test. Anthropic is also in the mix. The Claude maker has shared new financial data ahead of a planned IPO that may seek over $100 billion. If that goes ahead, it could set a global record for a stock market launch. SpaceX, for its part, plans to use its debt deal to lease data center gear. Its Grok model needs that hardware, and Google and Anthropic also rent some of its spare computing power. The firm says no prior committed AI chip funding deal has matched this one. Apollo and Goldman Sachs helped lead the SpaceX deal, with Goldman also working on its structure. BlackRock joined as an investor, along with accounts that KKR advises. Quite a few major finance names backing one very costly push. Still, there is a catch. Tech stocks have been weak as the market weighs whether vast AI costs will pay off. Meta and its peers keep buying chips and building data centers, but investors have begun to look harder at the bills. Musk has also flagged a grim outlook for neocloud firms. On X, he warned that lenders have all but cut off businesses without solid revenue beyond AI data centers. His view is that some of these firms may fail, while others may have to merge. For smaller compute firms, that leaves a tough spot. The biggest players can seek vast sums from banks and stock buyers, yet access to debt may be far less open for firms that rely mainly on renting AI hardware. [/QUOTE]
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Labrish
Nyuuz
Meta sought $95B in stock as SpaceX raised $40B in debt
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