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Meta announces $95 billion stock offering plan to finance AI expansion

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Meta announced on October 26 an equity financing plan totaling $95 billion for AI infrastructure and superintelligence investment, the company's first new share issuance since 2013. The financing has two steps: first, raising $35 billion through an underwritten public offering, including $22.5 billion of Class A common stock and $12.5 billion of mandatory convertible preferred stock; then raising $60 billion through an at-the-market offering, planning to sell non-voting Class C shares, which will not dilute Zuckerberg's control; Meta plans to establish this share class in January 2027 and launch the at-the-market offering in the first quarter of 2027. Meta said Nvidia, AMD and Broadcom intend to subscribe to up to $5 billion of shares in total, but have not made binding commitments. The offering size exceeds Google's $85 billion and Oracle's $25 billion share sales this year; the funds will be used for emerging AI opportunities including the family of apps, the AI agent Muse and the data center business, and Meta simultaneously raised its full-year capital expenditure forecast.

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Oct 29
Oct 28
Oct 27
  1. iThome (Taiwan)
    Meta launches a $95 billion financing plan, with three major chipmakers including Nvidia interested in subscribing

    Meta 于周一(10/26)宣布启动总规模上看 950 亿美元的股权融资计划,用于支应 AI 基础设施投资,Nvidia、AMD 及博通表达合计认购最多 50 亿美元 Class A 股票的意向,但尚未作出具约束力的投资承诺。首阶段 350 亿美元公开发行包括 225 亿美元 Class A 普通股及 125 亿美元强制转换特别股;Meta 还计划于 2027 年 1 月设立无投票权 Class C 股票,并于 2027 年第一季启动 600 亿美元随市发行(ATM)计划,以在筹资同时避免稀释既有股东投票权。Meta 预估今年资本支出达 1,350 亿至 1,450 亿美元,正兴建 4 座容量各超过 1GW 的 AI 超级运算集群;今年前三季营业现金流 969 亿美元,同期资本支出 858 亿美元。

Oct 26
  1. The Guardian · AI
    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.

  2. CNBC · Technology
    Meta announces $95 billion stock offering to finance AI expansion

    Meta announced on Monday plans to raise a total of $95 billion to fund AI infrastructure and superintelligence investments, and its premarket shares rose 1.6% after the news was announced. The financing comes in two steps: first, $35 billion through an underwritten public offering, then $60 billion through an at-the-market program; Meta said Nvidia, AMD and Broadcom intend to subscribe for up to $5 billion of shares. The funds will support emerging AI opportunities including its family of apps, the AI agent Muse and its data center business. Meta's third-quarter results announced last week showed revenue up 26% year over year to $64.60 billion, but free cash flow was negative, and its full-year capital expenditure forecast was raised to $135 billion to $145 billion; the company is building four superclusters each with more than 1 gigawatt of capacity, and expects total infrastructure capacity to nearly double year over year in 2026.

  3. Semafor
    Meta announces $95 billion stock offering to finance AI buildout

    Meta announced a $95 billion stock offering to finance its AI buildout, the company's first new share issuance since 2013. About $60 billion of it is non-voting stock newly created last week, which both reflects the company's urgent need for cash and lets Zuckerberg raise money and pay tax bills without diluting control. The offering is larger than Google's $85 billion and Oracle's $25 billion share sales this year; hyperscalers are expected to spend $800 billion on AI this year and more than $1 trillion next year. Meta shares rose 2% in premarket trading, which the author says shows bond investors are worried while stock investors remain optimistic.

  4. CNBC
    Meta announces $95 billion stock offering plan to fund AI expansion

    Meta announced plans to raise a total of $95 billion to support AI infrastructure and superintelligence investments. The company will first raise $35 billion through an underwritten public stock offering, then an additional $60 billion through an at-the-market program; Meta said Nvidia, AMD and Broadcom intend to subscribe for up to $5 billion in shares; after the announcement, its stock fell 1.6% in early trading. The funds will support "emerging AI opportunities" including its family of apps, the AI agent Muse and its data center business. Meta also raised its full-year capital expenditure forecast to $135 billion to $145 billion, is building four "superclusters" each with capacity exceeding 1GW, and said it expects to nearly double total infrastructure capacity year over year in 2026. Alphabet said in June that it planned to raise $85 billion, SpaceX has completed $40 billion in debt financing to purchase GPUs, and Anthropic is preparing an IPO.

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