Meta Sets $95 Billion Stock Sale to Fund AI Buildout

Meta announced on Monday that it plans to raise $95 billion in new equity to pay for its expanding artificial intelligence infrastructure. The company will initially issue $35 billion through underwritten public offerings. It will then sell an additional $60 billion through an at-the-market program.

Meta stated that Nvidia, Advanced Micro Devices, and Broadcom are interested in purchasing up to $5 billion of the new shares. The stock fell 1.6% in morning trading following the news. The company said it will use the funds for "emerging AI opportunities," including its app family, its AI agent Muse, and its data center business.

Meta intends to balance these investments using operating cash flow, investment-grade debt, partnerships, and this new equity capital. Last week, the company reported third-quarter revenue of $64.60 billion, a 26% year-over-year jump. That figure beat the analyst estimate of $63.37 billion. However, investors reacted to the company's negative free cash flow and a higher full-year capital expenditure forecast.

Meta now expects full-year capital expenditures to range from $135 billion to $145 billion. It raised the bottom of that range from the previous $130 billion. The stock dropped on Thursday after that forecast was released. The company is building four "superclusters" with more than 1 gigawatt of capacity each. It is on track to nearly double its total infrastructure capacity in 2026 compared to the prior year.

Ben Wood, senior partner at CCS Insight, told CNBC that the decision "reflects the eye-watering levels of investment required to keep up in the AI arms race." He noted that Meta is joining other major firms in seeking market capital. Alphabet said in June that it would look to raise $85 billion. SpaceX closed a $40 billion debt financing to buy graphics processing units. Anthropic is preparing for an initial public offering.

Goldman Sachs estimates that AI-related capital spending could reach about $7.6 trillion from 2026 through 2031. This spending covers compute, data centers, and power. TikTok U.S. is also looking to secure multiple gigawatts of computing capacity over the coming years.

Meta's move highlights the growing reliance on debt and equity among hyperscalers. The company aims to maintain its pace of infrastructure growth while managing its cash position.