Meta plans record $95 billion equity raise for AI infrastructure

Meta announced Monday it plans to raise up to $95 billion in its largest-ever equity fundraising to finance AI infrastructure expansion, including $35 billion in stock offerings and a $60 billion share sale program. The move comes as heavy spending strains the company's free cash flow. The larger share sale program will launch after new non-voting Class C shares begin trading in early 2027, with timing and terms not yet finalized. Chip suppliers Nvidia, AMD, and Broadcom have shown interest in up to $5 billion of Class A shares, raising concerns about circular capital flows in the AI industry. Meta reported a $2.12 billion cash burn in Q3, its first negative free cash flow in over a decade. Meta has committed to about $825 billion in future spending, primarily on data centers and AI infrastructure, while raising its annual capex forecast to $135-145 billion. The company will issue Class C shares in January 2027, effectively a two-for-one split, with CEO Mark Zuckerberg receiving shares he can sell to pay a potential California wealth tax.