Meta looks to raise up to $95 billion from stock sales for its AI build-out
Meta plans to raise fresh funds as it spends heavily on the AI infrastructure needed to develop consumer AI products.
TL;DR
- Meta plans to raise up to $95 billion through stock offerings for its AI build-out.
- This includes $35 billion in equity offerings and a planned $60 billion at-the-market offering of Class C shares.
- The new share class is intended to help CEO Mark Zuckerberg manage liquidity needs without impacting his voting control.
- Meta is investing to expand infrastructure and compute capacity for AI opportunities and personal superintelligence.
- Nvidia, AMD, and Broadcom have expressed interest in buying up to $5 billion of common stock.
- The company expects $135 billion to $145 billion in capital expenditures this year.
- Meta's revenue increased 26% last quarter, but operating income fell 37% due to higher costs.