Meta plans to raise up to $95 billion through a stock offering to support AI infrastructure
Meta plans to raise up to $95 billion through a stock offering to fund the expansion of AI infrastructure such as data centers and computing power. The company launched a public offering of about $35 billion in common stock and convertible preferred stock on Monday, and plans to launch an at-the-market stock sales program of up to $60 billion after a new class of non-voting Class C shares begins trading in the first quarter of 2027. Meta has raised the lower end of its capital expenditure forecast for this year to $135 billion to $145 billion; its free cash flow in the third quarter was negative $2.12 billion, turning negative for the first time in more than a decade; as of September 30, its cash and marketable securities stood at $82.45 billion, and its long-term debt was $80.92 billion.
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Meta plans to raise up to $95 billion to support AI infrastructure; the article lists data such as an upward revision to capital expenditure and free cash flow turning negative, making its funding pressure clear.
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Meta Platforms plans to raise up to $95 billion through equity offerings to help finance its costly expansion of data centers, computing capacity and other artificial intelligence infrastructure.The company on Monday launched public offerings totaling about $35 billion in common stock and convertible preferred stock. It also plans to introduce a separate at-the-market share sale program of up to $60 billion after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.Meta has stepped up spending on data centers, computing capacity and AI products as it competes with rivals including OpenAI and Anthropic.
1 View gallery Mark Zuckerberg. (Photo: Finn Gomez/Getty Images)The social media company had $82.45 billion in cash, cash equivalents and marketable securities as of September 30, slightly more than its $80.92 billion in long-term debt, according to its quarterly filing last week.
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Zuckerberg rejects calls for AI industry-wide slowdownMeta has committed to about $825 billion in future spending, primarily driven by growing investments in data centers, AI infrastructure and cloud computing capacity.Chipmakers 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, the company said.Last week, Meta raised the lower end of its annual capital expenditure forecast, saying it now expects spending of between $135 billion and $145 billion this year, compared with its previous forecast of $130 billion to $145 billion.The company reported a cash burn of $2.12 billion in the third quarter, marking its first negative free cash flow in more than a decade. That compared with positive free cash flow of $10.63 billion a year earlier.Meta reported third-quarter revenue of $64.60 billion, ahead of Wall Street expectations of $63.37 billion. It forecast fourth-quarter revenue of between $73 billion and $76 billion.