Meta Plans $95bn Stock Offering to Fund AI Expansion as Elon Musk Warns of AI Startup Collapse

Meta, led by Mark Zuckerberg, has announced a two-part $95 billion (£71 billion) stock offering to help cover its massive AI infrastructure costs, including multibillion-dollar investments in datacentres. The move comes as Elon Musk warns that hundreds of AI startups face collapse due to drying up funding. Meta, which owns Facebook, Instagram, and WhatsApp, is positioning itself as a leading investor in AI, but the fundraising highlights the enormous capital required to stay competitive. The offering is a signal of the intensifying AI arms race among tech giants, with smaller players potentially squeezed out. As Zuckerberg doubles down on AI, the industry faces a shakeout that could reshape the landscape.