Meta plans to issue $95 billion in stock to fund AI expansion

Meta announced plans to raise $95 billion (£71 billion) for AI spending, and its shares rose in premarket trading after the news. The financing has two parts: $35 billion through an underwritten public offering, with Nvidia, AMD and Broadcom expressing intent to participate as cornerstone investors subscribing up to $5 billion; and another $60 billion through an at-the-market offering of new non-voting Class C shares, which will not dilute Zuckerberg's control. In the same period, Musk said on X that the debt market has largely cut off funding to companies lacking revenue independent of AI data centers, that more than 200 neocloud compute providers will see "guppy-level" deaths and consolidation, and that CoreWeave and Iren shares fell 2% and 2.2% respectively in premarket trading.