Meta taps PIMCO, Blue Owl for $29bln data center expansion project, source says
PIMCO will handle about $26 billion of debt, likely to be issued in the form of bonds, while Blue Owl will contribute $3 billion in equity, the person said, speaking on condition of anonymity.
Bloomberg News, which first reported the deal, said that the company has been working with Morgan Stanley to raise funds, while Apollo Global Management and KKR were also in the running to lead the deal until the closing stage of negotiations.
Meta, PIMCO and Blue Owl declined to comment on the report.
The deal comes as Meta looks for partners to help fund its AI infrastructure push. Last week, the company said in a filing that it planned to offload about $2 billion in data center assets as part of a co-development strategy to share the costs of building facilities for generative AI.
In July, Meta CEO Mark Zuckerberg said that the company would spend hundreds of billions of dollars to build several massive AI data centers for its superintelligence unit, intensifying his pursuit of a technology he has chased with a talent war for top engineers.
Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 GW over the coming years, Zuckerberg said in a post last month on his Threads social media platform.
In June, the Financial Times reported that Meta was seeking to raise $29 billion from private capital firms to build AI data centers in the U.S., adding that the company is debating how to structure the debt raise and is also evaluating options to raise more capital. (Reporting by Surbhi Misra and Chandni Shah in Bengaluru; Editing by Alan Barona and Sonia Cheema)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
3 hours ago
- Khaleej Times
Trump extends tariff truce with China by another 90 days
U.S. President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, a White House official said on Monday with only hours to go before U.S. tariffs on Chinese goods were due to snap back to triple-digit rates. The order followed a noncommittal answer by Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of U.S. soybeans. A tariff truce between Beijing and Washington was set to expire on Tuesday at 00:01 ET (04:01 GMT). The order prevents U.S. tariffs on Chinese goods from shooting up to 145%, with Chinese tariffs on U.S. goods set to hit 125%, rates that would have resulted in a virtual trade embargo. "We'll see what happens," Trump told a press conference, when asked how he planned to extend the deadline. "They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself." Imports from China are currently subject to 30% tariffs, including a 10% base rate and 20% in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on U.S. imports to 10%. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline. Kelly Ann Shaw, a senior White House trade official during Trump's first term and now with Akin Gump Strauss Hauer & Feld, said she expected Trump to extend the 90-day "tariff détente" for another 90 days later on Monday. "It wouldn't be a Trump-style negotiation if it didn't go right down to the wire," she said, adding Trump could also announce progress in other aspects of the economic relationship as a backdrop for granting the extension. "The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations and there's been a lot of noise about everything from soybeans to export controls to excess capacity over the weekend," she said. Ryan Majerus, a former U.S. trade official now with the King & Spalding law firm, welcomed the news. 'This will undoubtedly lower anxiety on both sides as talks continue, and as the U.S. and China work toward a framework deal in the fall. I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns," he said. The White House declined to comment beyond Trump's remarks. The Treasury Department and U.S. Trade Representative's Office did not respond to requests for comment. U.S. Treasury Secretary Scott Bessent has said Washington has the makings of a deal with China and he was "optimistic" about the path forward. Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. Trump did not repeat the demand on Monday. But Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China.
The National
4 hours ago
- The National
Trump says gold to be spared from tariffs
US President Donald Trump said on Monday that gold will be exempt from tariffs, days after a government posting caused uncertainty as to what is considered a safe haven asset. "Gold will not be tariffed," Mr Trump wrote on the Truth Social media platform, without offering further details. US gold futures were trading 2.36 lower at to $3,408.80 an ounce at 2.15pm ET. Gold prices hit a record high last week after the US Customs and Border Protection ruled that gold bars from Switzerland would be subjected to tariffs that Mr Trump had placed on the country. A White House official later said it would issue an order in the near future to exempt gold bars. Had the tariff gone into effect, Switzerland's gold exports would have faced the same 39 per cent charge as other goods. The Swiss Precious Metals Association on Friday also warned the tariffs could harm "the international flow of physical gold". "We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the US, a long-standing and historical partner for Switzerland,' said Christoph Wild, the association's president. Barrick Mining chief executive Mark Bristow told Reuters before Mr Trump's announcement that the tariff's impact on miners would have been minimal. The price of gold is up more than 27 per cent this year as investors flock to it amid Mr Trump's on-again, off-again tariff agenda. Eyes are on a trade truce between the US and China that was set to expire on Tuesday. Washington and Beijing had imposed escalating tariffs on each other's goods this year, and the two countries had agreed to a 90-day pause in May that temporarily lowered them. Asked on Monday about the deadline, Mr Trump said: "We'll see what happens. They've been dealing quite nicely. The relationship is very good with President Xi [Jinping] and myself." Abramovich London A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million. A three-storey penthouse at Chelsea Waterfront bought for £22 million. Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military. Sale of Chelsea Football Club is now impossible. Structural%20weaknesses%20facing%20Israel%20economy %3Cp%3E1.%20Labour%20productivity%20is%20lower%20than%20the%20average%20of%20the%20developed%20economies%2C%20particularly%20in%20the%20non-tradable%20industries.%3Cbr%3E2.%20The%20low%20level%20of%20basic%20skills%20among%20workers%20and%20the%20high%20level%20of%20inequality%20between%20those%20with%20various%20skills.%3Cbr%3E3.%20Low%20employment%20rates%2C%20particularly%20among%20Arab%20women%20and%20Ultra-Othodox%20Jewish%20men.%3Cbr%3E4.%20A%20lack%20of%20basic%20knowledge%20required%20for%20integration%20into%20the%20labour%20force%2C%20due%20to%20the%20lack%20of%20core%20curriculum%20studies%20in%20schools%20for%20Ultra-Othodox%20Jews.%3Cbr%3E5.%20A%20need%20to%20upgrade%20and%20expand%20physical%20infrastructure%2C%20particularly%20mass%20transit%20infrastructure.%3Cbr%3E6.%20The%20poverty%20rate%20at%20more%20than%20double%20the%20OECD%20average.%3Cbr%3E7.%20Population%20growth%20of%20about%202%20per%20cent%20per%20year%2C%20compared%20to%200.6%20per%20cent%20OECD%20average%20posing%20challenge%20for%20fiscal%20policy%20and%20underpinning%20pressure%20on%20education%2C%20health%20care%2C%20welfare%20housing%20and%20physical%20infrastructure%2C%20which%20will%20increase%20in%20the%20coming%20years.%3C%2Fp%3E%0A
Khaleej Times
5 hours ago
- Khaleej Times
Gold prices whipsaw as US tariff confusion rattles bullion market
Global bullion markets were thrown into turmoil after a surprise ruling from US Customs and Border Protection suggested that imported gold bars would be subject to tariffs, stunning traders who had assumed the metal would be exempt. The move triggered a dramatic spike in New York futures, which hit a record high before retreating sharply when the Trump administration signalled it would issue an executive order to clarify what it called 'misinformation' about the tariffs. The episode underscored the vulnerability of the global gold trade to sudden policy shifts. Gold, usually treated as a financial instrument rather than a physical commodity, underpins a vast network of futures exchanges, over-the-counter markets and physical delivery systems linking key hubs such as London, New York, Zurich, Mumbai, Dubai and Hong Kong. More than $1.1 trillion in gold bars is held in vaults in New York and London alone, much of it stored by major dealers like JPMorgan and HSBC. The apparent decision, disclosed in a private letter to a Swiss refiner on July 31 and made public on Friday, immediately set off alarm bells across the industry. Refineries in Switzerland — which account for more than 70 per cent of global refining capacity — play a critical role in converting large London-standard bars into smaller 1kg or 100-ounce bars deliverable on the Comex exchange in New York. A Swiss trade group warned the tariffs would make US shipments unviable, while some Asian refineries temporarily halted US-bound sales. In New York, futures on Comex briefly surged above $3,530 an ounce, creating a record price gap of more than $100 with the London benchmark. That spread, around 3 per cent, still fell far short of the estimated 39 per cent reciprocal tariff cost for Swiss shipments, meaning Comex prices would need to approach $4,700 an ounce to make such imports feasible. The dislocation reflected not only panic buying but also severe liquidity stress in the futures market, where physical delivery depends heavily on Swiss-processed bars. Dubai's gold bullion market experts said while Friday's panic may prove to be a false alarm, it has left traders acutely aware of how quickly gold's finely balanced supply chain can be thrown into disarray, and how policy missteps can send prices whipsawing in a matter of hours. Traders are watching for Tuesday's US inflation data and Friday's retail sales figures for fresh cues. A softer-than-expected consumer price index could reinforce expectations of monetary easing, potentially lifting gold back towards $3,420–$3,450. Conversely, stronger data might embolden the dollar and pressure bullion towards the $3,350 range. Market analysts said the scare added a fresh layer of safe-haven demand to gold, even as prices retreated from their intraday highs. Dilin Wu, research strategist at Pepperstone, wrote in a note sent to Khaleej Times that 'the main catalyst driving gold higher was the inclusion of key Swiss-manufactured bars under tariff coverage,' which strained liquidity in both London and New York. The resulting surge in Comex premiums, he added, was compounded by broader macroeconomic factors — particularly expectations of a dovish pivot by the Federal Reserve. Ross Norman, a veteran trader and chief executive of Metals Daily, described the chaos as a stark reminder of the market's fragility. 'The disbelief isn't just that several billion dollars were made and lost overnight. When things blow out, you get lots of injuries — and this was one of those moments,' he said Robert Gottlieb, a former precious metals trader and managing director at JPMorgan Chase, said the problem lay in the policy's blunt approach. 'The government didn't look outside the physical format and didn't consider that this 'widget' was actually gold,' he noted, pointing out that tariffs would distort a market where bullion is more often traded as a store of value than as a manufactured good. The shock ruling immediately triggered a chain reaction among bullion banks and traders. Large bars in London, normally melted and recast in Switzerland before shipment to New York, suddenly faced prohibitive costs. Alternative suppliers such as Canada and Mexico offered little relief, with both countries potentially facing their own US tariff threats. Independent refineries, already operating on razor-thin margins, warned of lasting damage to global trade flows if the US shut out Swiss refiners from such a significant market. Traders said the tariff turmoil came at a time when slowing US economic data and shifting Fed rhetoric were already supporting gold prices. The ISM services index fell to its lowest since December 2024, labour market indicators weakened, and several Fed officials signalled readiness for rate cuts. Markets now price in over a 90 per cent chance of a September cut, a backdrop that favours non-yielding assets like gold. Rania Gule, senior market analyst at said the metal's inability to hold above the psychological $3,400 mark reflected short-term dollar strength and profit-taking ahead of key data releases, not a collapse in underlying demand. 'The Fed's tilt towards easing, combined with sustained central bank buying — including China's ninth consecutive month of reserve additions — creates a solid price floor,' she said. The confusion over tariffs is expected to linger until the White House issues its formal clarification. Darwei Kung, head of commodities at DWS Group, said investors should brace for continued volatility. 'From day to day, we learn more about new rules that could dramatically change the landscape of each commodity. Perhaps more change will result from negotiation in the days to come,' he said. For now, the market remains in what analysts call a zone of 'strategic anticipation' — caught between near-term uncertainty over US trade policy and the longer-term support from an easing Fed, geopolitical risks, and steady institutional demand.
