❯ Meta plans to raise up to $95 billion in equity for AI expansion

Two-stage fundraisingMeta, the parent of Facebook and Instagram, plans to raise up to $95 billion through equity financing for AI infrastructure and products. Reuters reports that it has launched roughly $35 billion in public offerings and plans a separate program for up to $60 billion. The timing and terms of the latter are not final.

The first saleThe launched offerings comprise approximately $22.5 billion of Class A common stock and $12.5 billion of mandatory convertible preferred stock. The second program is expected after non-voting Class C shares begin trading, allowing sales over time rather than delivering the entire $95 billion at once.

Why raise moreMeta is expanding chip purchases and data centers for model training, AI products and its existing businesses. In its latest earnings report, the company forecast 2026 capital expenditure of $135 billion to $145 billion. Third-quarter capital expenditure was about $34.9 billion and free cash flow was negative $2.12 billion. Equity would add another source alongside operating cash flow.

Suppliers show interestNvidia, AMD and Broadcom have indicated interest in buying up to $5 billion of Meta Class A shares in aggregate, Reuters says; those purchases have not been completed. The companies also supply chips to Meta, so the potential investment would connect supplier capital to a customer’s expansion.

▮ SIGNALEven a technology company with strong operating cash flow is turning to major stock sales as AI infrastructure changes its funding needs.