Meta Platforms said on Tuesday it has increased its largest-ever equity fundraising to $97.5 billion. The company is expanding its artificial intelligence infrastructure.
The Facebook parent raised its common stock offering, announced on Monday, from $22.5 billion to $25 billion. The shares were priced at $625.00 each.
Meta also priced 250 million depositary shares at $50 per share.
How the $97.5 Billion Plan Breaks Down
The company has launched public offerings worth about $35 billion in common and preferred stock. It also plans a separate at-the-market share sale program worth up to $60 billion.
Under an at-the-market program, a company sells shares gradually at current market prices. Meta said it will start this program after its new non-voting Class C shares begin trading.
That is expected in the first quarter of 2027. Meta has not yet finalized the timing and terms of the sale.
Nvidia, Advanced Micro Devices and Broadcom have shown interest of up to $5 billion in total for Class A shares. In a separate statement, Nvidia said it would invest $3 billion in the offering.
Meta has been spending heavily on chips and data centers to compete with OpenAI and Anthropic.
Other large tech firms have also raised money for AI. In June, Google parent Alphabet increased its equity offerings to $84.75 billion.
Meta’s Spending and Cash Position
Meta has committed to spending about $825 billion in the future. Most of this is for data centers, AI infrastructure and cloud computing power.
The company reported a $2.12 billion cash burn in the third quarter. It was Meta’s first negative free cash flow in over a decade, compared with positive cash flow of $10.63 billion a year earlier.
As of September 30, Meta held $82.45 billion in cash, cash equivalents and marketable securities. It had $80.92 billion in long-term debt.
Last week, Meta raised the lower end of its yearly capital spending forecast. The new range is $135 billion to $145 billion.
The company said it will issue Class C common stock in January 2027. This effectively creates a two-for-one stock split while keeping CEO Mark Zuckerberg’s control.
Meta also agreed to grant Zuckerberg Class C shares he can sell to help pay a potential California billionaire wealth tax. In return, he committed to remain in California.
William Blair analysts said they expect investors to keep questioning the financing and the chance of future capital raises.
Meta shares fell about 1.4% in morning trading on Tuesday.
