Meta Platforms has significantly increased its equity fundraising plans to a total of $97.5 billion as it ramps up investments in artificial intelligence infrastructure. This expansion includes enhancements to its data centers, chip technology, and computing capacity. The company has raised its common stock offering from $22.5 billion to $25 billion, setting the price at $625 per share. Additionally, Meta has introduced 250 million depositary shares priced at $50 each. A separate at-the-market share sale program, potentially worth up to $60 billion, is also planned, allowing Meta to issue shares gradually at market prices, with trading of its new non-voting Class C shares expected to commence in the first quarter of 2027.
The move has drawn interest from several major chipmakers, including Nvidia, Advanced Micro Devices, and Broadcom, who are considering investments totaling up to $5 billion. Nvidia has confirmed its plans to invest $3 billion in the offering. The involvement of these chip suppliers underscores the increasingly intertwined financial relationships between AI companies and their technology providers.
Despite this aggressive push into AI, Meta’s finances are under pressure. The company reported a negative free cash flow of $2.12 billion in the third quarter, a stark contrast to the positive free cash flow of $10.63 billion reported in the same period last 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.
To support its AI ambitions, Meta has adjusted the lower end of its annual capital expenditure forecast, now projecting spending between $135 billion and $145 billion. The company is betting on the growing demand for its AI products and the successful development of competitive AI models to eventually yield profitable returns. This fundraising initiative reflects a broader trend among major technology firms, which are increasingly turning to equity and debt financing to meet the rising costs of AI infrastructure.