Meta Platforms on Monday announced plans to raise as much as $95 billion to finance investments in its artificial intelligence infrastructure. The planned capital raise consists of roughly $35 billion in a public offering of common stock and convertible preferred shares, plus a separate market sale program of up to $60 billion.
The up-to-$60 billion program would be launched after the trading debut of new, non-voting Class C shares, which Meta expects could occur in the first quarter of 2027. The Class C share issuance and the associated market-sale authority are intended to provide additional funding for the company’s increasing spending on data centers, compute capacity and AI products.
Meta has been ramping up infrastructure investments as it competes with AI-focused companies such as OpenAI and Anthropic. The company said its future commitments amount to about $825 billion in expenditures overall, primarily driven by investments in data centers, AI infrastructure and cloud compute capacity.
Chipmakers have shown active interest in the offering: Nvidia, AMD and Broadcom have each indicated they could buy up to $5 billion worth of Meta’s Class A common stock.
Financial context and recent results
Last week, Meta raised the lower end of its capital expenditure guidance for 2026 — adjusting the expected range from a prior $130–145 billion to $135–145 billion. Meanwhile, in the third quarter the company reported negative free cash flow of $2.12 billion, the first negative outcome in more than a decade; a year earlier free cash flow had been positive $10.63 billion.
Third-quarter revenue was $64.6 billion, above the Wall Street analyst consensus of $63.37 billion. Meta projected fourth-quarter revenue between $73 billion and $76 billion.
Why this matters
The scale of the proposed fundraise and ongoing high levels of investment underscore Meta’s strategic priority to build scalable AI infrastructure. The capital would support expansion of data center capacity and cloud compute offerings as Meta vies with leading AI providers. At the same time, the large investments are weighing on near-term free cash flow, as reflected in the Q3 negative result.
Source: Reuters
Note: this article does not constitute investment advice.
