Meta will raise up to $95 billion in equity to finance its AI infrastructure

35 billion immediately, then 60 billion via a waterfront sales program: Nvidia, AMD and Broadcom say they are ready to buy up to 5 billion titles.

Meta announced on October 26 a plan to raise equity funds of up to $95 billion to support its investments in AI and "superintelligence". A first tranche of $35 billion is through guaranteed public offerings: 22.5 billion Class A ordinary shares via forward sales and 12.5 billion mandatory convertible preferred shares. The remaining $60 billion would be sold gradually on the market, in the form of non-voting shares, not before the first quarter of 2027.

Chip suppliers as anchor investors

Nvidia, AMD and Broadcom have expressed interest in buying up to $5 billion worth of shares. Meta shares were down 1.6% in early trading after the announcement. The group was coming off a quarter in which its revenue rose 26% year-on-year to $64.6 billion, but its free cash flow went into negative territory as its infrastructure spending exceeded what its business generated.

Meta now plans to invest between $135 billion and $145 billion over the year and is building four "superclusters" of more than one gigawatt each, on track to roughly double its total capacity in 2026. The operation comes on top of a wave of giant fundraisers in the sector, from Alphabet ($85 billion in June) to SpaceX and the announced IPO of Anthropic.