Meta Plans $95 B Equity Raise to Finance AI Infrastructure Expansion

On October 26, Meta Platforms announced a plan to raise up to $95 billion in equity to fund its AI-related expansion of data centers, cloud-computing power, and other infrastructure. The strategy consists of an initial $35 billion public offering of common and convertible preferred stock, followed by a $60 billion at-the-market (ATM) program tied to new non-voting Class C shares that are expected to begin trading in the first quarter of 2027.

Channel News Asia - CNA

• In the most recent third-quarter results, Meta reported revenue of $64.6 billion, surpassing analysts’ estimate of $63.37 billion.

Channel News Asia - CNA

• The quarter generated a $2.12 billion cash burn, marking the first negative free-cash-flow year in more than a decade, compared with a positive $10.63 billion a year earlier.

Meta Looks To Raise $95 Billion For AI Infrastructure

• Capital-expenditure guidance was raised to a range of $135 billion-$145 billion for the year, up from a prior range of $130 billion-$145 billion.

Channel News Asia - CNA

• As of September 30, Meta held $82.45 billion in cash, cash equivalents and marketable securities, slightly exceeding its long-term debt of $80.92 billion.

The Globe and Mail (Toronto)

• The $35 billion offering breaks down into roughly $22.5 billion of Class A common stock sold through forward-sale agreements and about $12.5 billion of depositary shares representing interests in newly issued Series A mandatory convertible preferred stock.

Meta Plans $95 Billion Equity Raise To Fund AI Expansion

• The ATM program would allow Meta to sell up to $60 billion of shares over time, using the newly created Class C non-voting shares.

Bloomberg

• Underwriters have options to purchase additional shares, potentially increasing the total amount raised.

Meta Plans $95 Billion Equity Raise To Fund AI Expansion

Meta says the proceeds will support “emerging AI opportunities” across its family of apps, its AI agent Muse, and its data-center business. The company plans to expand compute capacity and infrastructure needed for personal superintelligence and to compete with AI-focused rivals such as OpenAI and Anthropic.

Business Insider

• Meta’s shares rose about 1.6 % in pre-market trading, reaching $654 per share after the announcement.

Bloomberg

• Nvidia, Advanced Micro Devices (AMD) and Broadcom indicated interest in purchasing up to $5 billion of Meta’s Class A common stock, though the indications are non-binding.

Meta Plans $95 Billion Equity Raise To Fund AI Expansion

The equity raise highlights the massive capital required for large-scale AI infrastructure, placing Meta among hyperscalers that are increasingly leveraging equity and debt to fund AI development. The move signals Meta’s commitment to scaling its AI capabilities, which could reshape competition in the AI services market and influence future investment patterns among technology firms.

CNBC

All sources provide consistent figures for the equity raise, financial metrics, and timeline; no substantive discrepancies were identified.

CNBC