Meta announces $95 billion stock offering to fund AI expansion
The Facebook parent is launching $35 billion in public offerings now and plans another $60 billion later as negative free cash flow widens.
- On Monday, Meta Platforms launched public offerings of about $35 billion in common stock and convertible preferred stock to finance its costly AI expansion.
- The company plans to raise a total of $95 billion to support investments in AI infrastructure and compete with rival AI heavyweights OpenAI and Anthropic.
- Chipmakers Nvidia, AMD, and Broadcom will act as cornerstone investors, expressing interest in purchasing up to $5 billion of Meta's Class A common stock.
- Meta reported a 26% revenue jump last week, though shares tumbled 7% on Thursday after the company warned it needs "hundreds of billions of dollars" for AI.
- Capital spending of up to $145 billion is projected for this year, as the company funds "emerging AI opportunities" across its family of apps including Instagram and WhatsApp.
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Target plans to raise $95 billion through an initial stock offer and a future sales program to finance AI and superintelligence.The firm seeks to double its infrastructure and improve its performance on social networks, with sustained revenue growth thanks to artificial intelligence.
Nvidia, AMD and Broadcom have already expressed interest in buying shares. Meta plans to spend up to $145 billion on data centers only in 2026.
This is the group's first capital increase since its entry into the stock exchange in May 2012.
Meta Targets Up to USD 95 Billion in Capital Offerings to Scale AI Compute
Get latest articles and stories on Business at LatestLY. To fund its AI push, Meta Platforms said it will raise up to USD 95 billion in equity for data centers, cloud computing and related infrastructure. It announced the launch of concurrent underwritten public offerings consisting of depositary shares and Class A common stock tied to forward sale agreements, forming an initial USD 35 billion tranche of a broader multi-billion-dollar financing …
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