Meta to raise up to $95 billion in equity to fund costly AI expansion

Meta Platforms said on Monday it plans to raise up to $95 billion in equity to fund its costly AI-related expansion of data centres, cloud computing power and other infrastructure, Reuters reports.

The company launched public offerings of about $35 billion in common stock and convertible preferred stock. It also plans a separate at-the-market share sale programme of up to $60 billion after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.

The spending push pits Meta against AI heavyweights OpenAI and Anthropic, Reuters reports. Chip companies Nvidia, Advanced Micro Devices and Broadcom have expressed interest in purchasing up to $5 billion of Meta’s Class A common stock in the offering.

It had cash, cash equivalents and marketable securities of $82.45 billion, slightly exceeding its long-term debt of $80.92 billion as of 30 September, according to its quarterly filing from last week.

Last week Meta raised the lower end of its annual spending forecast, now expecting capital expenditure of between $135 billion and $145 billion this year, up from $130 billion to $145 billion expected previously. It reported a $2.12 billion cash burn in the third quarter, its first negative free cash flow in more than ten years, compared with positive cash flow of $10.63 billion a year ago. Third-quarter revenue was $64.60 billion, ahead of Wall Street estimates of $63.37 billion, and Meta projected fourth-quarter revenue of between $73 billion and $76 billion.