Everyone Is Scrambling for AI Money
Today, we have something very interesting. Everyone is looking for money to fund AI. And when I say everyone, I mean EVERYONE.
Anthropic has filed its paperwork to go public. Meta is issuing new shares to raise $95 billion. And SpaceX is borrowing $40 billion to buy chips. To put things into perspective, Goldman Sachs estimates that AI investments between 2026 and 2031 could reach $7.6 trillion.
Yes, you read that correctly. Trillions.
At the same time, however, Elon Musk is warning that more than 200 companies in the sector will disappear.
ANTHROPIC IS GOING PUBLIC
Anthropic, the company behind Claude, has officially filed its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC).
"What's that?" you might be wondering. Put simply, it's the document a company files to open its books to investors before going public.
It will list on the Nasdaq under the ticker symbol "ANT." The share price and number of shares have not yet been determined.
And this is where things get even more interesting.
In the first half of 2026, revenue reached $16.29 billion, compared with $1.16 billion a year earlier. That's more than fourteen times higher. Gross profit margin also climbed to 85%, up from 12% last year.
"So, it's making insane profits, right?" you might be asking.
Not exactly. The company reported a net loss of $80.7 billion for the six-month period. Yes, a LOSS OF $80 BILLION.
However, $72.4 billion of that figure was an accounting charge, mainly resulting from the increase in its valuation. The operating loss was "only" $693 million.
And where is all that money going? Computing power.
Anthropic has committed to spending $110 billion on Amazon's Trainium chips through 2036 and $114.5 billion on Google's chips through 2033. The company has also warned that its operating margins will fluctuate whenever new computing capacity comes online.
One final point: in May, Anthropic was valued at $965 billion, and its investors are hoping for a valuation exceeding $2 trillion. However, anyone buying shares won't have much say in how the company is run.
A special class of shares held by the seven founders will retain 50.1% of the voting power.
META IS ISSUING NEW SHARES
Now let's move on to the second development.
Meta announced that it plans to raise a total of $95 billion to fund AI infrastructure. How? First, $35 billion through a public share offering. Then another $60 billion by gradually selling shares on the market.
Nvidia, AMD, and Broadcom are reportedly interested in purchasing up to $5 billion worth of shares.
"Why would a company like Meta need money?" Good question.
Last week, Meta released its results. Revenue increased by 26% to $64.6 billion, exceeding analysts' expectations of $63.37 billion.
But investors were looking elsewhere: at negative free cash flow and infrastructure spending, which is now projected to reach $135 billion to $145 billion for the full year.
Meta is building four enormous computing centers, each with a capacity of more than one gigawatt.
And Meta isn't alone. In June, Alphabet announced plans to raise $85 billion.
As Ben Wood of CCS Insight put it, all of this highlights the "extraordinary levels of investment" required to stay competitive in the AI race.
SPACEX IS BORROWING MONEY, AND MUSK IS SOUNDING THE ALARM
This brings us to SpaceX, which isn't issuing shares. It's borrowing money instead.
The company secured $40 billion in financing through Apollo to purchase GPUs, the chips that power AI models. The chips are expected to be delivered in the first and second quarters of 2027.
AI has now become the company's largest business, generating $7.56 billion in revenue in the third quarter, compared with $813 million a year earlier. That's almost nine times as much.
At the same time, however, Musk made a statement that rattled the market.
He said debt markets have effectively closed for companies that don't have significant revenue streams beyond data centers. He also warned that more than 200 neocloud companies will die out, with only a few surviving.
"What exactly are neoclouds?"
Put simply, they are companies that rent out computing power for AI workloads. Examples include CoreWeave, Nebius, and Iren.
And here's another important point: SpaceX also sells computing capacity from its own data centers, making it a direct competitor to these companies.
Their shares had already been falling. CoreWeave and Nebius had lost more than 30% in a month, while Iren was down 40%.
Following Musk's comments, their shares fell further before recovering later that same day.
Of course, there's another side to the story.
Nvidia's Jensen Huang argues that demand is "off the charts" and that the real problem is a lack of capital.
Nebius says that if it made all of its 2027 capacity available for sale today, it would sell out completely. Iren, meanwhile, maintains that demand remains strong.