Meta announces $95 billion stock offering to fund AI expansion
Morgan Stanley and Goldman Sachs are running the sales as Meta’s free cash flow turns negative and capital spending climbs to $145 billion, the company said.
- 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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With a mega-capital increase, Facebook's mother Meta Platforms stands up against the massive costs of expanding artificial intelligence (AI). The social media giant wants to collect a total of 97.5 billion dollars of fresh capital from shareholders for the construction of additional data centers. He already has the first 37.5 billion in his pocket, as the Group announced on Tuesday.
The Group wants to secure fresh capital for the construction of further data centers.
The Facebook Group wants to collect gigantic sums from existing and new shareholders. This year alone, 135 to 145 billion dollars will be spent on expanding the AI infrastructure.
Meta Platforms, the company that owns Facebook, Instagram and WhatsApp, announced on Monday that it intends to attract $95 billion through an extensive capital market financing operation, to support investments in artificial intelligence infrastructure and the development of advanced superintelligence systems, CNBC broadcasts.
Meta is pursuing a $95 billion fundraising effort through a paid-in capital increase and the issuance of new shares to cover investment costs for AI infrastructure. This move comes in response to the increasing burden of infrastructure costs, such as data centers and semiconductors, and major partners including Nvidia and AMD are discussing equity acquisition.
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