Apollo Global Management is in discussions to lead a financing package of approximately USD 35 billion for Meta Platforms to support the development of AI-focused data centers in the US. KKR & Co. is also part of the investor group, Bloomberg News reported, citing sources familiar with the matter.
Also Read: Meta Plans to Invest up to USD 65 Billion in AI in 2025
Meta's AI Investment Plans
The talks are at an early stage, with no guarantee of a final deal. Meta has outlined plans to invest up to USD 65 billion in AI-related projects this year, including building a massive new data center and expanding its AI teams. The company aims to bring online a gigawatt of computing power by 2025 and has already announced a USD 10 billion data center in Louisiana, TelecomTalk previously reported.
Investments in AI Infrastructure
The growing demand for AI infrastructure has led to increased private credit investments in the sector. Databricks previously secured more than USD 5 billion of financing from lenders including Blackstone, Apollo and Blue Owl Capital. Apollo, which has ramped up large-scale corporate financing, recently led an USD 11 billion investment in a joint venture with Intel, according to the report.
Meta's AI Ambitions
Meta, which has heavily invested in AI, is pushing to make its chatbot, Meta AI, the most widely used globally by year's end. The company has also developed the Llama large language model and is building AI-powered smart glasses. CEO Mark Zuckerberg has projected Meta's long-term AI infrastructure spending to reach hundreds of billions of dollars.
Also Read: Meta Announces USD 10 Billion AI Data Center in Louisiana
Microsoft's AI Spending
Tech giants are making aggressive AI investments, with Microsoft planning to spend USD 80 billion on data centers this fiscal year. Its CEO, Satya Nadella, said last month that the company has to sustain spending to meet "exponentially more demand."
