Meta Platforms is significantly increasing its equity fundraising efforts to a total of $97.5 billion to support its growing investment in artificial intelligence infrastructure. This move includes the expansion of its common stock offering from $22.5 billion to $25 billion, with shares priced at $625 each. In addition, Meta has introduced a plan to sell 250 million depositary shares at $50 per share and is preparing an at-the-market share sale program valued up to $60 billion. This program, which allows for gradual share issuance at current market prices, is anticipated to commence trading of new non-voting Class C shares in the first quarter of 2027.
The fundraising initiative has attracted interest from several major chipmakers, including Nvidia, Advanced Micro Devices, and Broadcom, with potential investments totaling up to $5 billion. Nvidia has confirmed plans to invest $3 billion in the offering, highlighting the increasing financial interdependence between AI companies and their technology suppliers.
As Meta ramps up its AI expansion, the financial pressure is evident. The company reported a negative free cash flow of $2.12 billion in the third quarter, a sharp decline from a positive $10.63 billion the previous year. As of September 30, Meta held $82.45 billion in cash, cash equivalents, and marketable securities, alongside $80.92 billion in long-term debt.
Meta has adjusted its annual capital expenditure forecast, now projecting spending between $135 billion and $145 billion. The company is banking on the growing demand for its AI offerings and the development of competitive AI models to yield profitable returns in the long run. This fundraising effort underscores a broader trend among major tech companies toward leveraging equity and debt financing to manage the escalating costs associated with AI infrastructure development.