MENLO PARK: Meta Platforms announced plans on Monday to raise up to $95 billion through an equity offering programme to finance its expanding artificial intelligence infrastructure.
The company launched public offerings totalling about $35 billion. These include $22.5 billion in Class A common stock and $12.5 billion in depositary shares that represent mandatory convertible preferred stock.
Meta also plans a separate $60 billion programme involving its new non-voting Class C shares. The company expects those shares to begin trading in the first quarter of 2027.
It could then sell shares gradually through an at-the-market programme. However, Meta has not finalised that programme’s terms or entered into an agreement to establish it.
Chipmakers Nvidia, Advanced Micro Devices and Broadcom have expressed interest in purchasing shares. Their non-binding indications cover up to $5 billion of Class A stock collectively.
Meta expects capital expenditure of $135 billion to $145 billion in 2026 as it expands data centres and computing capacity. The Facebook parent recorded negative free cash flow of $2.12 billion in the third quarter.
At September’s end, Meta held $82.45 billion in cash, cash equivalents and marketable securities. Its long-term debt stood at $80.92 billion.
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Despite the spending pressure, the company generated $97 billion in operating cash flow during the first nine months of 2026.
Meta intends to fund its infrastructure investments through several sources, including operating cash flow, debt, partnerships and equity.
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The financing supports its AI development plans, including consumer and business agents, enterprise services and AI glasses.
Meta’s proposed Class C shares would carry no voting rights. The structure would allow further fundraising without reducing the voting power attached to existing Class A and Class B shares.
Under the current offerings, Meta does not expect immediate proceeds from the Class A shares sold through forward sale arrangements.
