Meta Platforms Inc. announced investments of about $29 billion for building an AI center in Louisiana, attracting leading financial companies.
Major Financing for AI Center
Meta has selected Pacific Investment Management Co. (PIMCO) and Blue Owl Capital to manage the $29 billion financing needed for the new AI center. PIMCO will provide $26 billion in debt, while Blue Owl will contribute $3 billion in equity. This financing marks a significant step for Meta in its effort to enhance the computing infrastructure for generative AI workloads.
Increasing Meta's Investments in AI
In recent months, Meta has significantly increased its investments in AI-related projects. In June 2023, the company announced an investment of $14.3 billion in Scale AI, acquiring a 49% stake without voting rights. Some employees from Scale AI were also brought on board. Additionally, Meta raised its overall capital expenditure forecast for 2023 to $72 billion due to infrastructure spending.
Criticism and Challenges of New AI Models
Recently, Meta unveiled its Llama 4 model, but the AI community responded with criticism. Developers pointed out poor programming performance, describing the model's output as 'complete junk.' Licensing terms restrict access to the model, causing discontent among developers. In response to questions about the timing of the model's release, Meta CEO Mark Zuckerberg stated it was released when it was ready.
Meta's investments in AI continue to grow despite community criticism. The company's effort to attract funds through private credit markets reflects current trends in the industry, where major tech firms are seeking new ways to finance their ambitious projects.
