Meta said Monday it is planning to raise a total of $95 billion to support its investments in artificial intelligence infrastructure and superintelligence. The stock was down 1.6% in morning trading after the announcement. Nvidia, Advanced Micro Devices and Broadcom were interested in purchasing up to $5 billion in shares, Meta said in a statement. The tech giant will initially raise $35 billion in underwritten public equity offerings, before raising an additional $60 billion with an at-the-market program.

In the race to the bottom for nothing Meta is having a hold my beer moment and trying to sell its shirt for more precious AI.

The news comes as hyperscalers pour record sums into the AI infrastructure build-out. Goldman Sachs estimates that AI-related capital spending could total about $7.6 trillion from 2026 through 2031, across compute, data centers and power. Meta’s planned investments will support “emerging AI opportunities” including its family of apps, its AI agent Muse and its data center business, the company said Monday.

The spending for AI is getting so far over the top that when this crashes it will not be pretty. Because at this point everyone is trying to outbuild each other. Even though that AI makers are saying slow down its a game of poker where every LLM is trying to outbluff everyone else and no one really has the upper hand but Nvidia and Micron.

Meta is among the major hyperscalers that are increasingly tapping debt to fund the expensive infrastructure required for the AI boom. Last week, Meta posted third-quarter results showing revenue jumped 26% year on year: $64.60 billion versus the $63.37 billion analysts expected. However, investors focused more on the tech company’s negative free cash flow and its higher full-year capital expenditure forecast.

The thing is here more companies are carrying two ledgers and are moving debts to the hidden books. Companies are leveraging anything that is not locked down and they think that the AI gold rush is coming and selling a better shovel will access the AI gold faster.

In my belief I think there is a collapse coming, Whether it be like the 2008 Mortgage crisis or worse. Given that spending is massively out of control and the markets while they are going up it’s only a increase of what you see. There are massive failures building up in the shadows and many of the corporations while showing profits they are showing profits by shifting prices and cooking the books. While mortgage companies and banks are regulated the corporations are much less regulated and are right now doing everything they can to show a “profit”.

It now expects its full-year capex to range from $135 billion to $145 billion, raising the bottom of the range from $130 billion. That sent Meta’s shares lower on Thursday.

Given that they posted a 64.60 Billion profit and spending 135 billion is a MASSIVE mismatch in direction. Facebook has been dropping user engagement and Meta with Quest has been losing engagement as well has put their whole hog into the generative AI thinking it will create magic profits. Eventually this spending is going to catch up with meta and when the check is due who is going to pay for this. Especially with every company outspending any profit being made they can not expect the US to bail them out.

Alphabet, Google’s parent company, said it would look to raise $85 billion in June. SpaceX has closed a $40 billion debt financing to purchase graphics processing units. Anthropic is preparing for an initial public offering. TikTok U.S. is looking to secure multiple gigawatts of computing capacity over the coming years, CNBC reported Friday.

As more people are jumping into the AI gold rush there is a finite capacity and when this all ends there will be one AI mine and millions of shovels looking for profits.

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CNBC – Meta announces $95 billion stock offering to fund AI expansion