Meta Platforms is intensifying its investment in artificial intelligence infrastructure by expanding its planned equity fundraising to $97.5 billion. This effort will support the development of data centers, chips, and computing capacity essential for AI growth. The company has increased its previously announced common stock offering from $22.5 billion to $25 billion, pricing the shares at $625 each, and has additionally priced 250 million depositary shares at $50 per share.
Alongside these measures, Meta plans to initiate an at-the-market share sale program worth up to $60 billion, enabling the gradual issuance of shares at current market prices. While the specifics of the program’s timing and terms are still pending, trading for its new non-voting Class C shares is anticipated to begin in the first quarter of 2027.
This fundraising drive has attracted interest from several major chipmakers, including Nvidia, Advanced Micro Devices, and Broadcom, which are considering potential investments totaling up to $5 billion. Nvidia has independently confirmed a $3 billion investment in the offering. This involvement by chip suppliers underscores the increasingly intertwined financial relationships between AI companies and their technology providers.
Meta’s financial situation is under pressure due to its AI expansion. The company reported a negative free cash flow of $2.12 billion in the third quarter, a significant drop from the positive $10.63 billion recorded a year earlier. As of September 30, Meta’s financial reserves included $82.45 billion in cash, cash equivalents, and marketable securities, with long-term debt amounting to $80.92 billion.
In response to these developments, Meta has adjusted the lower end of its annual capital expenditure forecast, now projecting spending between $135 billion and $145 billion. The company is banking on the growing demand for AI products and the creation of competitive AI models to eventually yield profitable returns. This fundraising initiative reflects a broader trend among big tech firms towards leveraging equity and debt financing to manage the increasing costs of AI infrastructure.