Berkshire Hathaway is reportedly in talks to join an early equity funding round for Meta's AI projects, which would give Meta outside capital instead of relying solely on internal resources. The article notes that Berkshire, a diversified group with a market cap of about $1.2 trillion, generates much of its capital from insurance, freight rail and utilities, and previously showed interest in a large AI-related capital raise through an Alphabet equity deal. It says a Meta deal would signal Berkshire putting money into big tech infrastructure rather than only holding listed shares. Key questions are whether Berkshire actually takes part and on what terms, and whether management begins quantifying its AI-related exposure in future disclosures.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Berkshire HathawayMETAAI investmentartificial intelligence
Open a keyword to see other news on the same topic.
Related news
- Meta Eyes an Early Equity Deal for Its AI War Chest—and Berkshire Could Be a Buyer
- Meta Just Burned Cash for the First Time Since Its IPO Year: Wall Street Raised Its Targets Anyway
Meta Platforms grew third-quarter revenue 26% to $64.60 billion and beat its own forecast, but free cash flow turned negative at $2.12 billion, its first dip below zero since the second quarter of 2012, versus $10.63 billion a year earlier. The shift reflects heavy AI spending: capital expenditure including leases reached $34.91 billion, or 54% of revenue. Meta narrowed its 2026 capex outlook to $135–145 billion. Shares fell 6.6% to $651.05 in Thursday’s morning trading, yet six of the seven firms that updated their views raised price targets, with the average $856 target implying about 26% upside from the premarket price. Trade Nation’s David Morrison said there is little clarity over when, or even if, the planned spending will generate a return.
- The More Muse Grows, the More It's Going to Cost Meta
- Meta Introduces Non-Voting Shares To Fund Massive AI Expansion
Meta plans to issue a new class of non-voting shares (Class C) starting January 2027, giving each shareholder one new share for each share owned, to fund AI spending, acquisitions and retention of top talent while CEO Mark Zuckerberg keeps control. Revenue in the third quarter reached 64.6 billion USD, above the 63.37 billion USD analysts expected, and the stock rose more than 4% in pre-market trading; however, 2026 capital spending is now expected at 135-145 billion USD, leaving free cash flow negative at 2.12 billion USD in Q3 compared with positive 10.63 billion USD a year earlier. More than 10 million people in the US and Canada set up the Muse AI product in about a month and a half, and CFO Susan Li said AI businesses should add revenue in 2027. On the legal side, a New Mexico judge ordered a 25 billion USD penalty, and EPS was 3.83 USD, or 7.40 USD excluding a 9.89 billion USD settlement charge.
- Meta’s capital-raising plans expose a major weakness in the AI boom
Meta (NASDAQ:META) shares fell 7% on Thursday despite strong earnings, after the company unveiled plans to issue a new class of non-voting Class C stock. In its filing, a special committee cited an increasingly challenging environment for raising capital, pointing to recent and anticipated large raises by Alphabet, SpaceX, Anthropic and OpenAI to fund similar AI growth. Meta said it currently has sufficient capital for its needs but wants more financing flexibility going forward, with the new shares available as early as the end of 2026. The article notes Meta raised its 2026 capital expenditure forecast to $135–145 billion, while third-quarter revenue grew 26% to $64.6 billion and capex reached $34.91 billion, pushing free cash flow negative.
- Meta found a new way to pay for its AI boom
Related markets
Latest news
- Next week, a bank closes its record date for a 50% dividend, the highest in the sector in 2026
Techcombank (TCB) has set October 30, 2026 as the final registration date for its stock dividend, at a 50% ratio: shareholders holding 100 shares will receive 50 new shares. This is the highest ratio in the banking sector in 2026, above HDBank and LPBank (30%) and VPBank (26%). The bank plans to issue more than 3.543 billion shares, worth over 35,431 billion VND at par value, funded by undistributed profit in its audited 2025 financial statements. Charter capital is expected to rise from 70,862.4 billion VND to about 106,293.6 billion VND, overtaking MB (100,687 billion VND) and VPBank (100,000 billion VND) as the largest in the system. If the planned ESOP issuance is also completed, charter capital could reach nearly 106,600 billion VND.
- Stocks making big moves this week: Braze, Amkor, Oceaneering, Arhaus, and Silgan Holdings
Braze (BRZE) jumped 51.2% on Tuesday after Salesforce agreed to acquire the company for about $5.66 billion in enterprise value. Amkor (AMKR) rose 7.1% on Wednesday after announcing a new $1.3 billion agreement with NVIDIA to expand capacity in South Korea, bringing its multi-year commitments across Arizona and South Korea to $3 billion. Oceaneering (OII) fell 17.5% on Thursday after reporting a 26% year-over-year decline in third-quarter 2026 net income attributable to the company. Arhaus (ARHS) rose 2.6% on Wednesday as investors kept bidding up shares after Piper Sandler analyst Peter Keith upgraded the stock from Neutral to Overweight and raised his price target to $13 from $9. Silgan Holdings (SLGN) gained 5.1% on Monday after agreeing to combine its metal packaging business with Trivium Packaging in a deal that delivers $2.3 billion in cash proceeds.
- International Business : Euro zone private sector growth slows
Euro zone private sector growth slowed in October to its weakest pace in four months, as energy-driven cost increases and a renewed contraction in France weighed on activity. The S&P Global flash Composite PMI Output Index fell to 51.9 from 53.1 in September, its lowest since June and below all forecasts in a Reuters poll that had predicted 52.7. Input costs rose sharply again, linked to higher energy, fuel and transport costs partly due to the Middle East war, and firms raised selling prices at a slower pace than in September. Higher interest rates are also beginning to dampen demand, and a Reuters poll expects the ECB to hold its deposit rate at 2.50% next week before raising it by 25 basis points in December. Business confidence fell to a five-month low, with France standing out for pessimism, as its PMI pointed to contraction and confidence hit its lowest since 2012 outside the pandemic period.
- Gold next evolution
The article argues that tokenization could give gold a larger role in the financial system, with the World Gold Council estimating it could unlock up to $700 billion in latent investment demand. This comes as U.S. real yields have climbed to their highest level in 19 years, raising the opportunity cost of holding gold, which does not generate income. Tokenized gold could let financial institutions use gold more efficiently as collateral, finance transactions, meet margin requirements and access liquidity without selling their holdings. The article notes challenges such as the need for trusted custodians, transparent ownership structures, reliable redemption mechanisms and common standards to avoid a fragmented market. It also stresses that tokenization would not remove gold's sensitivity to real yields or turn it into an income-producing asset.
- International Business : Tech selloff relents as oil prices hit five - month high
The global tech selloff eased after fears over the vast funding needs of AI hit Wall Street and triggered the biggest rally in US Treasuries in more than three years. Brent oil, however, hit a new five-month high of $115 a barrel after Houthi attacks on Saudi Arabia and reports that the US and Israel had drawn up plans for renewed strikes on Iran after the US midterm elections. European natural gas prices climbed another 4% and were almost 30% higher so far this month. The Nasdaq had tumbled 2.6% on Thursday, its biggest slump since June, while the Philadelphia SE Semiconductor Index plunged almost 7%. Japan's Nikkei ended its week down over 4%, while mainland China's CSI300 rose 1.7% after hitting its lowest level since July 2025.
- Wall Street doubts gold near - term strength , Main Street maintains bullish minority as central banks take center stage
Gold fell sharply over the week as rising oil prices, persistent inflation worries and expectations of further Federal Reserve tightening outweighed safe-haven demand. A technology-led equity selloff on Thursday triggered more liquidations and pushed spot gold back below $4,000 per ounce. Gold hit a weekly low of $3,975.10 per ounce, its lowest since early June, after trading at $4,164.69 on Sunday evening. The latest Kitco survey showed Wall Street pessimism rising while Main Street kept a more bullish minority view. Several analysts still see $4,000 as support, though others point to weak technical signals and thin liquidity, with daily volumes around 129,000 contracts.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.