Meta Platforms said on Monday it plans to raise as much as $95 billion through equity offerings, the largest in its history, to fund aggressive expansion of AI data centers and compute capacity after reporting its first negative free cash flow in over a decade.
Meta Platforms announced on Monday that it intends to raise up to $95 billion by selling shares, marking the largest equity fundraising in the company's history and underscoring the scale of capital required for its artificial intelligence build-out.
The company launched underwritten public offerings totaling about $35 billion, consisting of roughly $22.5 billion in Class A common stock and $12.5 billion in depositary shares representing mandatory convertible preferred stock. It also outlined plans for a separate at-the-market program of up to $60 billion in new non-voting Class C shares, expected to begin after those shares start trading in the first quarter of 2027.
Meta said the funds will support continued investment in AI infrastructure and personal superintelligence, including its family of apps, the Muse AI agent, and data center expansion. Nvidia, AMD, and Broadcom have expressed interest in purchasing up to $5 billion of the Class A shares in total, though the indications are non-binding.
The company's statement and regulatory filings confirm the offering sizes and the structure of the Class C program. Reuters, Bloomberg, and CNBC report the same figures and the chipmakers' interest. No source has contradicted the announced amounts.
William Blair analysts wrote that the financing reinforces Meta's confidence in long-term AI returns while highlighting the increasingly capital-intensive nature of the opportunity, and that investors will continue to question potential future capital raises. Ben Wood of CCS Insight told CNBC the move reflects the eye-watering investment levels needed to keep pace in the AI arms race. The next markers will be the pricing and closing of the $35 billion offerings and any finalization of the Class C ATM program.
People Sentiments Public Mood: Neutral
- William Blair analysts: The financing reinforces both Meta's confidence in the long-term returns from AI investment and the increasingly capital-intensive nature of pursuing that opportunity.
- Ben Wood, CCS Insight: The decision to raise more money reflects the eye-watering levels of investment required to keep up in the AI arms race.