Meta plans $95bn stock offering to bankroll AI expansion

Meta is planning to raise $95bn in a stock offering to fuel its massive AI infrastructure spending, backed by chipmakers Nvidia, AMD and Broadcom, who will act as cornerstone investors.

The parent of Instagram and WhatsApp last week reported a 26 per cent jump in sales in the third quarter, ahead of analysts’ estimates, and projected capital spending of up to $145bn this year, as it warned investors it would need to raise “hundreds of billions of dollars” over several years to fund its bet on AI.

The news sent shares in Mark Zuckerberg’s social media group tumbling by 7 per cent on Thursday.

Meta kicked off that fundraising process on Monday with a plan to raise $35bn in underwritten public equity offerings. It also plans to raise a further $60bn via an “at the market” programme.

“AI is creating significant opportunities for Meta across its core business and new products and services,” the Silicon Valley company said. “Meta’s AI investments are already generating tangible returns through increased engagement, improved advertising performance and increased monetisation.”

This is a developing story