Meta said Monday it plans to raise a total of $95 billion to support its investments in artificial intelligence and superintelligence infrastructure.
The stock was down 1.6% in morning trading after the announcement. Nvidia, Advanced microdevices And Broadcom were interested in purchasing up to $5 billion in stock, Meta said in a statement.
The tech giant will initially raise $35 billion through underwritten public stock offerings, before raising an additional $60 billion through a market program.
The news comes as hyperscalers are investing record sums in building AI infrastructure. Goldman Sachs estimates that AI-related capital spending could total around $7.6 trillion from 2026 to 2031, across computing, data centers and energy.
Meta’s planned investments will support “emerging AI opportunities,” including its family of applications, its Muse AI agent and its data center business, the company announced Monday.
It plans to balance funding these investments through a combination of operating cash flow, investment grade debt, partnerships and equity.
Meta racing to secure AI infrastructure
Meta is among the leading hyperscalers that are increasingly using debt to finance the expensive infrastructure needed for the AI boom.
Last week, Meta released third-quarter results showing that revenue jumped 26% year-over-year: $64.60 billion versus the $63.37 billion analysts expected. However, investors focused more on the tech company’s negative free cash flow and its higher capital spending guidance for the full year.
It now expects its full-year capital spending to be between $135 billion and $145 billion, bringing the low end of the $130 billion range. This sent Meta shares lower on Thursday.
Meta is building four “superclusters” with a capacity of more than 1 gigawatt each and is on track to nearly double the total infrastructure capacity in 2026 on an annual basis, the company said.
The decision to raise more money “reflects the exorbitant investment levels required to keep pace with the AI arms race,” Ben Wood, senior partner at CCS Insight, told CNBC.
“Meta offering more shares comes at a time when many companies, like Google, SpaceX and soon Anthropic, are turning to the markets to raise money.”
Alphabet, Google’s parent company, announced it would seek to raise $85 billion in June. SpaceX closed $40 billion in debt financing to purchase graphics processing units. Anthropic is preparing for an IPO.
TikTok US is looking to secure several gigawatts of computing capacity over the coming years, CNBC reported Friday.
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