Meta (META) Plans $95 Billion Stock Raise for AI Expansion

Meta (META) announced plans to raise $95 billion to support investments in AI infrastructure and superintelligence. The company will first raise $35 billion through underwritten public equity offerings, followed by an additional $60 billion via an at-the-market program. The announcement lifted Meta's stock by 1.6% in premarket trading.

The planned investments target emerging AI opportunities, including Meta's app family, its AI agent Muse, and its data center business. Funding will come from a combination of operating cash flow, investment-grade debt, partnerships, and equity capital. Meta is among major hyperscalers using debt to finance AI-related infrastructure.

In recent third-quarter results, Meta reported revenue of $64.60 billion, a 26% increase year-over-year and above analyst expectations of $63.37 billion. However, investors noted the company's negative free cash flow and raised full-year capital expenditure forecast now ranging $135 billion to $145 billion, up from a previous low of $130 billion. This capex increase previously caused a decline in the stock price on the announcement day.

This capital raise reflects Meta's commitment to growing its AI business, indicating increased spending on infrastructure and technology development. The large-scale funding plan could affect Meta’s balance sheet and future cash flow dynamics important to investors given the higher capex guidance.