Meta Platforms has expanded its Meta AI investment plans with a planned equity raise of $97.5 billion, up from the roughly $95 billion package disclosed a day earlier, to pay for larger data centres, chips and computing capacity as it races rivals in artificial intelligence.
On Tuesday the company said the common-stock portion of the offering would rise to $25 billion from the $22.5 billion outlined on Monday, with shares priced at $625 each. It still aims to raise about $12.5 billion by selling 250 million convertible preferred depositary shares at $50 apiece, and to run a separate programme to sell up to $60 billion of shares over time at market prices once non-voting Class C shares begin trading in the first quarter of 2027.
How the fundraising is structured
Chipmakers Nvidia, Advanced Micro Devices and Broadcom have indicated non-binding interest in buying up to $5 billion of Class A common stock in total. Nvidia separately said it would invest $3 billion in the equity offering. Meta said net proceeds are meant for general corporate purposes as it expands computing capacity and data-centre infrastructure.
Monday’s disclosure had framed concurrent public offerings of about $35 billion—$22.5 billion in Class A common stock under forward sale agreements plus $12.5 billion in series A depositary shares—alongside the future $60 billion at-the-market programme. Underwriters were also expected to receive a 30-day option for extra depositary shares and additional Class A stock. Meta’s shares closed down nearly 2% at $630.56 on Monday.
Spending, cash and AI buildout
The Meta AI investment plans sit against heavy capital spending. Last week the company raised the lower end of its annual capital-expenditure forecast to a range of $135 billion to $145 billion. It has committed to about $825 billion of future spending driven mainly by data centres, AI-related infrastructure and cloud computing power. Meta says it owns data centres in 23 US states, is building four superclusters of more than one gigawatt each, and is on track to nearly double total infrastructure capacity this year on an annual basis.
That push has strained cash generation. Meta reported a $2.12 billion cash burn in the third quarter—its first negative free cash flow in more than a decade—against a positive $10.63 billion a year earlier. As of 30 September it held $82.45 billion in cash, cash equivalents and marketable securities, against $80.92 billion in long-term debt. Third-quarter revenue rose 26% year on year to $64.6 billion, with net income of $9.9 billion. About 3.64 billion people used at least one Meta app daily as of September, and its consumer AI agent Muse had onboarded more than 10 million users in the United States and Canada.
What analysts and ownership moves signal
William Blair analysts said investors are likely to keep questioning the financing and the risk of further capital raises, while also arguing that the package shows Meta’s confidence in long-term returns from AI even as the work grows more capital-intensive. Meta plans to issue Class C common stock in January 2027, effectively creating a two-for-one split, to fund acquisitions and retain talent while keeping chief executive Mark Zuckerberg’s control intact. It also agreed to grant him Class C shares he can sell to help meet a potential California billionaire wealth tax, in return for his commitment to remain in California.
Timeline: what has happened so far
- Monday: Meta unveiled a financing plan of about $95 billion—roughly $35 billion in concurrent public offerings plus a future $60 billion at-the-market equity programme—to fund AI infrastructure and “personal superintelligence.”
- Monday: Chipmakers Nvidia, AMD and Broadcom signalled interest of up to $5 billion in Class A shares; Meta’s stock closed near $630.56, down almost 2%.
- Last week: Meta lifted the lower end of its annual capital-expenditure outlook to $135–145 billion and restated about $825 billion of future AI-related spending commitments.
- Third quarter: Free cash flow turned negative by $2.12 billion; revenue reached $64.6 billion.
- Tuesday: Meta raised the planned equity raise to $97.5 billion, increasing the common-stock sale to $25 billion at $625 a share; Nvidia said it would invest $3 billion.
Aasan alfaaz mein
Meta ne AI ke liye paise jama karne ka plan barha kar $97.5 billion kar diya hai. Ye paise data centers aur chips ke liye hain, taake WhatsApp, Instagram aur Facebook wali company AI mein aage rahe. Nvidia jaisi chip companies bhi is deal mein hissa le sakti hain. Aam users ke liye seedha matlab yeh hai ke Meta AI services pe bohot zyada kharch kar rahi hai, lekin abhi billon ya subscription rates ka koi naya elaan nahi hua.
