After a brutal selloff in technology stocks, OpenAI cut its fundraising target to $20 billion from $30 billion and lowered its expected valuation to $1.25 trillion from $1.4 trillion. Quarterly results from major cloud providers fueled concerns about massive artificial intelligence spending, even though Anthropic filed for an initial public offering showing strong revenue growth and a return to positive cash flow. S&P Global moved Meta’s outlook to negative, while maintaining its AA- rating, citing negative free cash flow, rising leverage and uncertainty over the monetization of its investments. The agency expects Meta’s capital expenditures to rise from $140 billion this year to more than $225 billion in 2027 and $252 billion in 2028, while operating free cash flow remains negative at $71 billion in 2027 and $39 billion in 2028. Meta disputes the assessment and says its artificial intelligence investments will create new business opportunities and revenue streams.
Source: Read the original article
