Anthropic · OpenAI · Meta · Wall Street · Financial Times · Fortune Technology
AI boom hits a wall on Wall Street as OpenAI cuts fundraising target while Meta gets a credit warning over its cash flow
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The seemingly endless gusher of capital that’s been showered on Silicon Valley during the AI boom may be coming to an end soon as Wall Street pushes back on massive spending plans.
Key facts
- Meanwhile, S&P sees Meta’s capex reaching $140 billion this year, topping $225 billion in 2027, hitting $252 billion in 2028, and then flattening out from there
- Following a brutal selloff in tech stocks over the past week, OpenAI slashed the target on its latest fundraising round to $20 billion from $30 billion, Financial Times
- The credit ratings agency maintained Meta at AA- but warned the social media leader’s leverage could top 1.0x as soon as 2027, which is the downgrade threshold for the current rating
- On Thursday, Alphabet fell about 12%, its worst day on record
Summary
Following a brutal selloff in tech stocks over the past week, OpenAI slashed the target on its latest fundraising round to $20 billion from $30 billion, Financial Times. The funding round was also upstaged by Anthropic, according to the report, as OpenAI’s arch-rival prepares to go public next month. The timing couldn’t have been worse. To be sure, there were other positive signs as well, in addition to Anthropic’s bullish S-1.