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Global technology stocks rebounded on October 26 as Anthropic’s US initial public offering (IPO) filing renewed investor interest in artificial
intelligence (AI), even as concerns persisted over the cost of building AI infrastructure and the time required to generate sustainable returns.
The filing has drawn fresh attention to the financial performance of leading AI developers. Anthropic reported rapid revenue growth alongside substantial losses, highlighting the high costs of developing and operating advanced AI systems. Its proposed listing could give investors greater insight into how markets value AI businesses as scrutiny of their growth prospects and financial sustainability increases.
The fundraising plans of major technology companies also underline the scale of capital required to expand AI capabilities. Meta Platforms has launched approximately $35 billion in public stock offerings and outlined plans for a separate share-sale programme of up to $60 billion, taking its potential equity fundraising to $95 billion. The larger programme is expected to begin after its new non-voting Class C shares start trading, currently anticipated in the first quarter of 2027. Meta has said the programme’s timing, size and terms have not been finalised.
Separately, SpaceX has reached a binding commitment to enter into an approximately $40 billion financing lease with an entity managed by Apollo Global Management to finance AI chips and related server equipment. The arrangement is expected to support SpaceX’s computing infrastructure expansion, with lease schedules beginning as equipment is delivered in the first half of 2027. The transaction remains subject to closing conditions.
Together, these developments illustrate how AI companies are turning to equity offerings and specialised financing arrangements to secure the computing capacity needed to develop and deploy advanced systems.
However, access to capital does not guarantee that these investments will generate sufficient revenue or profits.
On October 26, the S&P 500 rose 0.70% to 7,677.03, while the Nasdaq Composite gained 0.83% to 26,169.38, according to preliminary closing data reported by Reuters. Semiconductor and other AI-related stocks helped lift the market as investors reassessed the sector’s outlook following recent declines.
The gains were not shared by all companies. Meta shares fell 1.9% during the session despite its fundraising plans, reflecting investor scrutiny of the potential costs and implications of its AI expansion. South Korea’s KOSPI also rose sharply on October 27 as semiconductor stocks strengthened, although the broader market remained under pressure from recent losses.
Investors are now looking to quarterly results from major technology companies, including Alphabet, Microsoft and Amazon, for evidence that AI spending is translating into stronger business performance. The Federal Reserve’s policy decision and interest-rate guidance are also expected to influence market sentiment, borrowing costs and valuations.
The rebound highlights continued investor interest in AI, but the sustainability of the rally will depend on more than fundraising announcements. Companies must demonstrate that demand for AI services can support recurring revenue, cover rising infrastructure costs and deliver returns that justify the capital invested in the technology.
The filing has drawn fresh attention to the financial performance of leading AI developers. Anthropic reported rapid revenue growth alongside substantial losses, highlighting the high costs of developing and operating advanced AI systems. Its proposed listing could give investors greater insight into how markets value AI businesses as scrutiny of their growth prospects and financial sustainability increases.
The fundraising plans of major technology companies also underline the scale of capital required to expand AI capabilities. Meta Platforms has launched approximately $35 billion in public stock offerings and outlined plans for a separate share-sale programme of up to $60 billion, taking its potential equity fundraising to $95 billion. The larger programme is expected to begin after its new non-voting Class C shares start trading, currently anticipated in the first quarter of 2027. Meta has said the programme’s timing, size and terms have not been finalised.
Separately, SpaceX has reached a binding commitment to enter into an approximately $40 billion financing lease with an entity managed by Apollo Global Management to finance AI chips and related server equipment. The arrangement is expected to support SpaceX’s computing infrastructure expansion, with lease schedules beginning as equipment is delivered in the first half of 2027. The transaction remains subject to closing conditions.
Together, these developments illustrate how AI companies are turning to equity offerings and specialised financing arrangements to secure the computing capacity needed to develop and deploy advanced systems.
However, access to capital does not guarantee that these investments will generate sufficient revenue or profits.
On October 26, the S&P 500 rose 0.70% to 7,677.03, while the Nasdaq Composite gained 0.83% to 26,169.38, according to preliminary closing data reported by Reuters. Semiconductor and other AI-related stocks helped lift the market as investors reassessed the sector’s outlook following recent declines.
The gains were not shared by all companies. Meta shares fell 1.9% during the session despite its fundraising plans, reflecting investor scrutiny of the potential costs and implications of its AI expansion. South Korea’s KOSPI also rose sharply on October 27 as semiconductor stocks strengthened, although the broader market remained under pressure from recent losses.
Investors are now looking to quarterly results from major technology companies, including Alphabet, Microsoft and Amazon, for evidence that AI spending is translating into stronger business performance. The Federal Reserve’s policy decision and interest-rate guidance are also expected to influence market sentiment, borrowing costs and valuations.
The rebound highlights continued investor interest in AI, but the sustainability of the rally will depend on more than fundraising announcements. Companies must demonstrate that demand for AI services can support recurring revenue, cover rising infrastructure costs and deliver returns that justify the capital invested in the technology.
