Meta Raises Up to $98 Billion to Fund AI Infrastructure

Meta Platforms is executing a massive capital raise of up to $98 billion to finance the aggressive expansion of its artificial intelligence infrastructure. The strategy includes an initial $35 billion public offering of common and preferred stock, followed by a planned at-the-market program of up to $60 billion in new, non-voting Class C shares starting in early 2027. This structure allows the company to raise capital without diluting the voting control of its leadership.

The fundraising follows a third quarter where Meta reported revenue of $64.60 billion but suffered its first negative free cash flow in over a decade, totaling negative $2.12 billion. The company has increased its 2026 capital expenditure forecast to between $135 billion and $145 billion. To support these costs, Meta is leveraging strategic partnerships with chipmakers. Nvidia has committed $3 billion to the equity offering, while Advanced Micro Devices, Inc. has committed $1 billion.

These investments support the development of Muse, a personal AI agent designed to provide personal superintelligence. Muse reached 10 million accounts within six weeks of launch. While the company's advertising business remains strong, Meta faces significant legal pressures, including a $9.89 billion charge for a multistate settlement regarding platform addictiveness and a $25 billion jury verdict in New Mexico over data privacy practices.

This surge in spending mirrors a broader industry trend. Space Exploration Technologies Corp. recently closed a $40 billion debt round for AI chips, and Anthropic has filed for an IPO that could value the company at $2 trillion. Elon Musk warned that debt markets are increasingly restricting access to capital for companies lacking substantial revenue independent of AI data centers.