Meta eyes record $97.5 billion equity raise to fund AI expansion
META•Meta raised the planned size of its equity offerings to $97.5 billion, including $25 billion in common stock and $12.5 billion in convertible preferred shares. It also plans a separate share sale program of up to $60 billion, while Nvidia and AMD announced investments totaling $4 billion in the offering.
1. Offering expands to $37.5 billion
Meta plans to raise $25 billion by selling common stock at $625 per share, up from the $22.5 billion disclosed Monday. It also priced 250 million convertible preferred depositary shares at $50 each, for a total offering value of $12.5 billion.
2. Chipmakers show interest
Nvidia and AMD separately announced investments of $3 billion and $1 billion, respectively, in Meta’s equity offering. Broadcom also expressed interest in buying shares, with the three chipmakers’ total potential investment reaching up to $5 billion.
3. Separate sale and cash burn
Meta plans a separate program to sell up to $60 billion in shares over time at prevailing market prices, expected to begin after its planned non-voting Class C shares start trading in the first quarter of 2027. The company reported a $2.12 billion cash burn in the third quarter, its first negative free cash flow in over a decade, compared with positive cash flow of $10.63 billion a year earlier. Meta has committed to spending about $825 billion in the future, primarily on data centers, AI infrastructure and cloud computing power.
