Facebook parent launches $35bn offering, with a further $60bn planned, as investors weigh the cost of the artificial intelligence race.
Meta Platforms, owner of Facebook, Instagram and WhatsApp, has unveiled plans to raise up to $95 billion in its largest-ever equity financing initiative, as soaring artificial intelligence infrastructure costs place growing pressure on cash flow and shareholder returns.
The company announced on Monday that it had launched approximately $35 billion in public offerings, comprising $22.5 billion in Class A common shares through forward sale arrangements and $12.5 billion in mandatory convertible preferred securities.
A further $60 billion could be raised through a separate programme allowing Meta to sell shares gradually at market prices, potentially beginning in the first quarter of 2027. That programme has not yet been established, and the full $95 billion is not guaranteed.
The fundraising underscores the extraordinary capital demands of the AI race. Meta expects 2026 capital expenditure of $135 billion–$145 billion, primarily supporting data centres, computing infrastructure and advanced AI development.
Despite reporting third-quarter revenue growth of 26% to $64.6 billion, Meta recorded negative free cash flow of $2.12 billion as infrastructure investment absorbed operating cash generation. At September’s end, it held $82.45 billion in cash and marketable securities against approximately $80.92 billion in long-term debt.
Chipmakers Nvidia, AMD and Broadcom have indicated interest in purchasing up to $5 billion of Meta shares collectively, according to the company’s announcement. Their potential participation highlights the increasingly interconnected financing relationships between AI infrastructure suppliers and their largest customers.
Meta’s planned non-voting Class C shares would also help raise capital without proportionately weakening founder Mark Zuckerberg’s voting control, although additional equity issuance could dilute existing shareholders’ economic interests.
The central question is shifting from who can build the largest AI infrastructure to who can earn sufficient returns from it.
For Meta, stronger advertising performance and emerging AI products offer potential revenue opportunities. But its unprecedented financing ambitions raise a sharper test for investors: whether future AI earnings can justify today’s vast infrastructure commitments.
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