Meta Plans Record $95 Billion Equity Raise to Fund AI Expansion

Meta Plans Record $95 Billion Equity Raise to Fund AI Expansion

Meta Platforms has announced plans to raise up to $95 billion in its largest-ever equity fundraising, as the Facebook parent spends aggressively on artificial intelligence infrastructure. The company launched public offerings worth about $35 billion in common and preferred stock on Monday, October 26, and plans a separate at-the-market share sale programme worth up to $60 billion.

The initial $35 billion tranche combines about $22.5 billion of Class A common stock sold through forward sale agreements with roughly $12.5 billion of mandatory convertible preferred stock, offered as 250 million depositary shares to be listed as METAM. The larger $60 billion programme would sell new non-voting Class C shares and is expected to begin in the first quarter of 2027, once those shares start trading.

Chip giants Nvidia, AMD and Broadcom have shown interest in buying up to $5 billion of the Class A shares combined, a sign of how closely the AI supply chain is now financing itself. Meta's shares slipped about 1.4 percent in morning trading after the announcement. The move follows Alphabet's $84.75 billion equity raise earlier this year, as big tech firms increasingly tap markets rather than cash reserves to pay for data centres and computing power.

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