Following the report, Meta's stock slid as much as 7%, dipping to about $582.91, as investors weighed the possible capital raise and dilution risk.

Executives have discussed creative financing options, with no final financing strategy selected and no investment banks hired yet, keeping all options on the table.

Meta rolled out the Muse Spark AI model earlier this year as the first in its Muse family but has delayed releasing an API for developers to connect Muse Spark with other programs.

Meta is exploring a premium AI agent, nicknamed Hatch, that would offer features like software development help, calendar management, and email tasks, with pricing tiers under consideration.

Analysts note potential tension between Meta's AI-related capital expenditure and core profitability, with results lagging peers like Google despite heavy AI spending.

Meta posted strong first-quarter results, with revenue up 33% year over year to $56.31 billion driven by ad growth and higher impressions, though user metrics were tempered by outages and regional restrictions.

Some analysts remained constructive on Meta long-term, with Buy ratings and elevated price targets after key AI events and product rollouts.

Meta is weighing a large equity offering—potentially tens of billions of dollars—to fund AI infrastructure and related expansion, a move that comes as part of a broader push into AI and platform monetization.

Risks cited include potential drops in AI demand, rising data-center costs, and possible youth-safety and regulatory actions that could impact product design and returns.

Broader tech market weakness and regulatory concerns added pressure, contributing to Meta's underperformance versus its 52-week high and year-to-date gains.

Meta is testing revenue strategies under Meta One, including subscription tiers for Instagram, WhatsApp, Facebook, and Meta AI with higher usage and enhanced messaging.

Meta has not publicly responded to comment requests, leaving strategy decisions to ongoing negotiations and planning.