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Capital Expenditures

2 GoKawiil briefs on this topic

Meta to issue new non-voting share class to fund AI spending

Meta announced in its third-quarter earnings report that it will create a new class of non-voting shares, with trading set to begin in 2027. The company said proceeds would support AI infrastructure investment, potential acquisitions, and employee compensation. Meta also raised its 2025 capital expenditure forecast to between $135 billion and $145 billion.

Bloomberg warns AI sector's finances resemble a fragile debt-fueled bubble

Bloomberg reports that Wall Street investors are increasingly worried the AI industry's financial structure is a precarious 'house of cards,' built on massive capital expenditures and debt tied to data center buildouts. Analysts note AI-related spending now accounts for roughly half of US GDP growth, meaning any slowdown could trigger a financial shock comparable to the dot-com crash.