Meta Platforms Plans $95 Billion Equity Raise for AI

Meta Platforms Incorporated announced a plan Monday to raise up to $95 billion in equity to fund the expansion of its artificial intelligence infrastructure. The financing strategy begins with an immediate $35 billion public offering, consisting of $22.5 billion in Class A common stock and $12.5 billion in Series A Mandatory Convertible Preferred Stock. This will be followed by an at-the-market program for up to $60 billion in non-voting Class C shares, potentially starting in the first quarter of 2027.

Chipmakers Nvidia Corporation, Advanced Micro Devices, and Broadcom Inc. have expressed nonbinding interest in purchasing up to $5 billion of the Class A common stock. Morgan Stanley and Goldman Sachs Group, L.P. are serving as lead joint bookrunning managers for the current offerings.

The capital raise comes as Meta reports its first negative free cash flow in over ten years, despite third-quarter revenue of $64.60 billion. The company has increased its full-year capital expenditure forecast to between $135 billion and $145 billion to support AI products such as the Muse agent and AI-enabled smartglasses. Meta intends to cover these costs through a combination of equity, operating cash flow, investment-grade debt, and strategic partnerships.