Meta Plans a $95 Billion Share Sale to Pay for Its AI Buildout

Meta announced on Monday that it intends to raise $95 billion to support spending on AI infrastructure and superintelligence. The money will come in two stages: $35 billion through underwritten public equity offerings first, then another $60 billion through an at-the-market program. Nvidia, AMD and Broadcom have shown interest in buying as much as $5 billion of the shares each. Meta said the funds will back new AI opportunities across its family of apps, its Muse AI agent and its data center business, and that it will balance funding with operating cash flow, investment grade debt, partnerships and equity. Shares fell about 1.6% in morning trading.

Meta Capex and Third Quarter Results

Last week Meta reported third quarter revenue of $64.60 billion, up 26% from a year earlier and above the $63.37 billion analysts expected. Investors, however, focused on negative free cash flow and a higher spending outlook, with full year capital expenditure now seen at $135 billion to $145 billion, up from a floor of $130 billion. The company is building four superclusters, each with more than 1 gigawatt of capacity, and expects to nearly double its total infrastructure capacity in 2026.

AI Infrastructure Spending and Big Tech Fundraising

Goldman Sachs estimates AI related capital spending could reach about $7.6 trillion from 2026 through 2031 across compute, data centers and power. Ben Wood of CCS Insight said the raise reflects the enormous investment needed to keep pace in the AI race. Meta is far from alone: Alphabet said in June it would look to raise $85 billion, SpaceX closed $40 billion in debt for GPUs, and Anthropic is preparing for an IPO. Nvidia, AMD and Broadcom shares all rose on the news, and TikTok US is also seeking several gigawatts of computing capacity.