Meta Raises Over $2 Billion to Fund AI Data Centers

In an effort to finance the extensive development of data centers for artificial intelligence, Meta is seeking to raise over $2 billion by selling various assets. According to a recent quarterly report, the company has reclassified certain assets, including land and ongoing construction projects, as "held for sale" and intends to transfer them to external investors within the next year for co-development. Chief Financial Officer Susan Li explained that this shift toward partnering with outside financial entities is a strategic change in response to the escalating costs of AI-related infrastructure. This move follows CEO Mark Zuckerberg's public commitment to investing billions in AI development.

The company's published figures reveal a significant increase in capital expenditure, reaching $17 billion in the second quarter, with a primary focus on AI infrastructure. Meta projects its total capital spending for the year will fall between $66 billion and $72 billion. Analysts generally believe these investments will be offset by enhanced advertising efficiency and the creation of new business opportunities, such as smart glasses developed in partnership with companies like EssilorLuxottica and Ray-Ban.

In a recent post outlining Meta's AI strategy, Zuckerberg stated that the remainder of the decade would be a transitional period for AI and that the company's main objective is to make the technology more accessible to users. The company's AI team is now led by Alexandr Wang, the former CEO of Scale AI, a startup in which Meta recently invested $14.3 billion.