Meta announces $95 billion equity offering to fund AI infrastructure

Meta announced a plan to issue new shares worth a combined total of $95 billion to fund massive investments in artificial intelligence infrastructure and superintelligence technologies over the coming years. The company said it would begin raising $35 billion through an initial public offering, followed by an additional $60 billion through a direct listing. Meta noted that major companies including Nvidia, AMD, and Broadcom have expressed interest in buying up to $5 billion of the new shares. The move comes as technology giants race to expand their AI investments, with Goldman Sachs estimating that global capital spending on AI could reach $7.6 trillion between 2026 and 2031. Meta aims to use the proceeds to support its own AI projects and future products, including "Muse" - the company's AI agent - and expanding its data center operations.

The company said it would balance its financing plans through a mix of operating cash flows, investment debt, partnerships, and equity increases. This follows the company's announcement of strong third-quarter financial results, with revenue growing 26% year over year. Despite this growth, investors focused on continued free cash flow declines and raising annual capital expenditure expectations, which are now expected to range between $135 billion and $145 billion. Meta is also laying off thousands of employees in response to AI investment costs and plans to build four large computing clusters, each exceeding one gigawatt, with a goal of doubling total infrastructure capacity by end of 2026 compared to the prior year.