Meta partners with Blue Owl to accelerate AI infrastructure growth
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Meta announced on Tuesday that it has entered a $27 billion joint venture with Blue Owl Capital to finance and develop its massive Hyperion data center in rural Louisiana. Under the agreement, Blue Owl will hold an 80% stake in the venture, while Meta will retain a 20% stake and manage construction and property operations at the Richland Parish facility. As part of the deal, Blue Owl contributed approximately $7 billion in cash, and Meta received a one-time payout of $3 billion. Meta said the partnership provides it with the “speed and flexibility” needed to construct the data center and advance its “long-term AI ambitions.” Meta partners with Blue Owl to accelerate AI infrastructure growth The Hyperion data center in Richland Parish, Louisiana, is expected to provide over 2 gigawatts of computing power to train large language models, the technology that powers tools like ChatGPT and Google Gemini. Doug Ostrover and Marc Lipschultz, Co-CEOs of Blue Owl, said Hyperion is “an ambitious project that reflects the scale and speed required to power the next generation of AI infrastructure.” Morgan Stanley estimates that major tech firms, including Alphabet, Amazon, Meta, Microsoft, and CoreWeave, are on pace to spend $400 billion on AI infrastructure this year. OpenAI has recently inked several agreements worth more than $1 trillion to secure around 26 gigawatts of computing power, enough to supply electricity to roughly 20 million U.S. homes. According to Meta’s finance chief, Susan Li, Tuesday’s deal is “a bold step forward.” The firm has signed leases for the facility with a four-year initial term, including an option to extend, and anticipates that the project will create more than 500 jobs upon completion. Alvin Nguyen, senior analyst at Forrester, noted that it definitely helps them mitigate risks at the expense of their ownership stake. He…
Filed under: News - @ October 22, 2025 12:20 am