Meta Platforms said on Monday that it plans to raise up to $95 billion through equity offerings to finance its costly expansion of artificial intelligence infrastructure, including data centres and computing capacity.
The company launched public offerings of approximately $35 billion in common stock and convertible preferred stock. It also plans a separate at-the-market share sale programme worth up to $60 billion after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.
The fundraising plans reflect Meta’s accelerating investment in artificial intelligence as it competes with major industry rivals, including OpenAI and Anthropic.
Meta Expands AI Infrastructure Investment
Meta has significantly increased spending on data centres, computing capacity and AI products as it seeks to strengthen its position in the rapidly growing artificial intelligence market.
The company has committed to approximately $825 billion in future spending, driven primarily by investments in data centres, AI-related infrastructure and cloud computing capacity.
As part of the latest offering, chipmakers Nvidia, Advanced Micro Devices and Broadcom have expressed interest in purchasing up to $5 billion of Meta’s Class A common stock, according to the company.
The scale of the planned investment highlights the substantial financial resources required to develop and operate advanced AI systems, which depend on extensive computing infrastructure and specialised hardware.
Annual Spending Forecast Raised
Last week, Meta raised the lower end of its annual capital expenditure forecast, saying it now expects spending of between $135 billion and $145 billion this year.
The revised forecast compares with its previous projection of $130 billion to $145 billion, reflecting the company’s growing investment in infrastructure to support its AI ambitions.
The spending increase comes as technology companies face pressure to expand computing capacity and develop increasingly sophisticated AI products while managing the financial risks associated with large-scale investments.
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Cash Flow Comes Under Pressure
Meta’s latest fundraising plans follow a significant change in its cash flow position.
The company reported a cash outflow of $2.12 billion in the third quarter, marking its first negative free cash flow in more than a decade. This compared with positive free cash flow of $10.63 billion in the same period a year earlier.
According to its quarterly filing, Meta held $82.45 billion in cash, cash equivalents and marketable securities as of September 30. Its long-term debt stood at $80.92 billion.
The figures show that Meta continues to hold substantial financial resources, even as its infrastructure expansion increases pressure on cash flow and raises its funding requirements.
Revenue Growth Supports Expansion
Despite the substantial spending, Meta reported stronger-than-expected revenue for the third quarter.
The company generated $64.60 billion in revenue, exceeding Wall Street estimates of $63.37 billion. It also forecast fourth-quarter revenue of between $73 billion and $76 billion.
The fundraising announcement signals that Meta intends to continue investing heavily in artificial intelligence infrastructure as competition intensifies across the technology sector.
The company’s ability to turn those investments into sustainable revenue growth will remain an important factor for investors assessing the financial risks and potential returns of its AI strategy.
