Meta Plans $95B Stock Sale to Fund Massive AI Infrastructure Buildout
Meta has announced plans to raise up to $95 billion through new stock and preferred share offerings to fund its massive AI infrastructure expansion. The financing structure includes Class A common stock, convertible preferred shares, and future sales of non-voting Class C shares, designed to secure capital without diluting CEO Mark Zuckerberg's control. Chip giants Nvidia, AMD, and Broadcom have expressed non-binding interest in purchasing up to $5 billion of Meta stock.
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Meta plans to sell new stock to raise money for its AI infrastructure buildout. According to The Information, the company plans to sell up to $95 billion in shares.
About $22.5 billion will come from selling Class A common stock, according to a Meta announcement. Another $12.5 billion will come from depositary shares, each representing one-twentieth of a new preferred share. Unless they're converted earlier, these preferred shares will automatically convert into common stock in August 2029. The remaining $60 billion will come from ongoing sales on the open market once new Class C shares start trading, likely no earlier than the first quarter of 2027.
Right now, Meta has Class A shares with one vote each and Class B shares with ten votes each. Entities controlled by CEO Mark Zuckerberg hold most of the Class B shares. The Class C shares, which Meta announced last week, carry no voting rights. That lets Meta raise money without diluting Zuckerberg's control. According to the announcement, Nvidia, AMD, and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock.