Meta Platforms (META) is planning to raise $35 billion to help fund its ambitious data center push within the U.S.
Media reports state that Apollo Global Management is in talks to lead a $35 billion financing package for Meta Platforms that will be used to develop artificial intelligence (AI) data centers throughout the U.S. Apollo, which is an alternative asset manager, is reportedly considering providing a major part of the financing itself.
News of the capital raise comes after Meta Platforms outlined plans to spend as much as $65 billion on AI projects and infrastructure this year. CEO Mark Zuckerberg has said he wants to build a giant new data center to run AI applications and increase the tech company’s internal AI teams.
Big Spending on AI
Meta Platforms isn’t the only mega-cap technology company that is spending big on AI this year. Microsoft (MSFT) has announced that it will spend $80 billion this year on AI data centers and other initiatives focused on AI technologies.
In recent weeks, Meta has announced plans to construct a $10 billion data center in Louisiana and bought new computer chips to power some of its existing AI products. Bankers and other financiers have been lining up to get in on the action. In recent financing deals, Apollo has retained a slice of the funding it provides while syndicating the rest to other investors.
META stock has risen 39% over the last 12 months.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 44 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $764.61 implies 14.17% upside from current levels.
