{"id":3335,"date":"2026-10-27T10:03:54","date_gmt":"2026-10-27T05:03:54","guid":{"rendered":"https:\/\/ipp-news.com\/?p=3335"},"modified":"2026-10-27T10:03:54","modified_gmt":"2026-10-27T05:03:54","slug":"meta-eyes-record-95-billion-equity-raise-to-fund-ai-expansion","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=3335","title":{"rendered":"Meta eyes record $95 billion equity raise to fund AI expansion"},"content":{"rendered":"
\n

Meta Platforms said on Monday it plans to raise to $95 billion in its largest-ever equity fundraising, as \u200cthe social media giant spends aggressively on its AI infrastructure expansion.<\/strong><\/p>\n

The Facebook parent has launched public offerings worth about $35 billion in common and preferred stock, and said it also plans to launch a separate at-the-market share sale program worth up to $60 billion.<\/p>\n

The company will launch the larger share sale program after its new non-voting Class C \u200bshares begin trading, which is expected in the first quarter of 2027, but said it has not yet finalised its timing and \u200bterms of the sale.<\/p>\n

Meta\u2019s fundraising plan, among the biggest by an AI company, has also drawn interest of up \u2060to $5 billion in total from Nvidia, Advanced Micro Devices and Broadcom for Class A shares.<\/p>\n

Their funding interest adds to concerns about an increasingly \u200bcircular flow of capital in the AI industry, as chip suppliers help finance the expansion of one of their biggest customers.<\/p>\n

Meta has been pouring money into chips and data centres to better compete with OpenAI and Anthropic.<\/p>\n

\u201cWe expect investors to continue to question the financing and potential for future capital raises,\u201d William Blair analysts said in a note.<\/p>\n

\u201cOverall, we believe the financing reinforces both Meta\u2019s confidence in the long-term returns from AI investment and the increasingly capital-intensive nature of pursuing that \u200bopportunity.\u201d<\/p>\n

The company\u2019s shares fell about 1.4% in morning trading.<\/p>\n

The latest fundraising further underscores a shift among big technology companies increasingly tapping debt markets and raising equity<\/a> \u200bto bolster their AI infrastructure, having previously relied on cash to fund their investments.<\/p>\n

Earlier this year, Alphabet increased the size<\/a> of its equity offerings to $84.75 billion.<\/p>\n

Separately on Monday, \u200cSpaceX said \u2060an affiliate of Apollo Global Management will buy AI chips and server hardware and lease them to the rockets-to-AI firm, in a deal with total principal payments of about $40 billion<\/a>.<\/p>\n

<\/a>Meta\u2019s AI spending is burning cash<\/strong><\/h3>\n

Meta has committed to spend about $825 billion in the future, primarily driven by its growing investments in data centres, AI-related infrastructure and cloud computing power.<\/p>\n

But the aggressive expansion has eroded its historically strong free cash flow.<\/p>\n

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 a positive cash flow of $10.63 billion a year ago.<\/p>\n

Still, the early popularity of its consumer-focused AI agent Muse<\/a> and release of a competitive new series of AI models<\/a> have helped partly justify Meta\u2019s \u200baggressive investments.<\/p>\n

\u201cWe believe that Meta will ultimately produce a profitable AI business and its returns longer-term should help \u200bthe company diversify, \u2060although the path may not be linear,\u201d William Blair analysts said.<\/p>\n

The company had cash, cash equivalents and marketable securities of $82.45 billion and long-term debt of $80.92 billion as of September 30, according to its latest quarterly filing.<\/p>\n

Last week, Meta raised the lower end of its annual capital expenditure<\/a> forecast to a range of $135 billion \u2060to $145 billion.<\/p>\n

The \u200bcompany has said it would issue Class C common stock in January 2027, effectively resulting \u200bin a two-for-one split, to fund acquisitions and retain top talent while maintaining CEO Mark Zuckerberg\u2019s control.<\/p>\n

Meta agreed to grant Zuckerberg Class C shares<\/a> that he can sell to help pay \u200ba potential California billionaire wealth tax, in exchange for a commitment to keep him in California.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Meta Platforms said on Monday it plans to raise to $95 billion in its largest-ever equity fundraising, as \u200cthe social media giant spends aggressively on its AI infrastructure expansion. The Facebook parent has launched public offerings worth about $35 billion in common and preferred stock, and said it also plans to launch a separate at-the-market share sale program worth up to $60 billion. The company will launch the larger share sale program after its new non-voting Class C \u200bshares begin trading, which is expected in the first quarter of 2027,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-3335","post","type-post","status-publish","format-standard","hentry","category-english"],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3335"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3335\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}