Meta launches $35 billion stock offering, plans another $60 billion for AI expansion
publishers 11articles 12first reported 26 Oct, 11:09 UTCdeveloping since 26 Oct · 7 editions
Meta launched about $35 billion in stock offerings Monday and outlined plans for a separate program that could raise an additional $60 billion as it expands spending on artificial intelligence infrastructure.
The initial offerings consist of about $22.5 billion of Class A common stock and $12.5 billion of depositary shares representing mandatory convertible preferred stock. Meta said it plans to begin the later at-the-market offering after its new nonvoting Class C shares start trading, expected in the first quarter of 2027. That program would allow shares to be sold gradually at prevailing market prices, but its timing, size and terms have not been finalized and no agreement has been signed.
The Facebook, Instagram and WhatsApp parent said it is investing in infrastructure and computing capacity to support AI products and its goal of developing “personal superintelligence.” Meta expects capital expenditures of $135 billion to $145 billion this year and plans to fund its investments through operating cash flow, debt, partnerships and equity.
Meta reported that quarterly revenue rose 26% to about $64.6 billion, while higher costs weighed on operating income. The company has said it is building four AI superclusters with more than one gigawatt of capacity each and expects to nearly double its total infrastructure capacity in 2026.
Nvidia, AMD and Broadcom have expressed nonbinding interest in purchasing portions of the common-stock offering.
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