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Meta Platforms plans to raise up to $95 billion through equity offerings to finance its expanding artificial intelligence operations, including data centres, computing capacity and other infrastructure.
The company announced public offerings worth approximately $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 fundraising plans come as Meta increases investment in AI infrastructure to compete with major industry players, including OpenAI and Anthropic.
Meta has committed substantial resources to expanding its data centres, computing capacity and AI products. The company expects these investments to support its long-term ambitions in artificial intelligence and cloud computing.
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According to its quarterly filing, Meta held $82.45 billion in cash, cash equivalents and marketable securities as of September 30. Its long-term debt stood at $80.92 billion.
The company has also committed to approximately $825 billion in future spending, primarily driven by investments in data centres, AI infrastructure and computing power, according to the supplied report. The scope and timing of this commitment require further clarification.
Meta said chipmakers Nvidia, Advanced Micro Devices and Broadcom had expressed interest in purchasing up to $5 billion of its Class A common stock in the offering.
The potential investments come as semiconductor companies seek to strengthen their positions in the expanding AI market, where demand for advanced chips and computing infrastructure continues to drive major capital commitments.
However, the reported interest does not necessarily mean the companies have completed purchases or committed to invest the full amount.
Last week, Meta increased the lower end of its annual capital expenditure forecast. The company now expects spending of between $135 billion and $145 billion this year, compared with its previous forecast of $130 billion to $145 billion.
The higher spending outlook reflects the scale of Meta’s infrastructure expansion and its focus on developing AI capabilities.
Meta also reported a cash burn of $2.12 billion in the third quarter, marking its first negative free cash flow in more than a decade, according to the supplied report. A year earlier, the company had recorded positive free cash flow of $10.63 billion.
Despite the spending pressure, Meta reported third-quarter revenue of $64.60 billion, exceeding Wall Street estimates of $63.37 billion.
The company forecast fourth-quarter revenue of between $73 billion and $76 billion, signalling expectations for continued business growth.
Meta’s proposed equity fundraising would provide another potential source of capital as it pursues its AI expansion. The eventual impact on shareholders will depend on the final offering terms, the number of shares issued and how effectively the company converts its infrastructure investments into future revenue.
