Meta unveils $95bn share sale as AI spending drains cash reserves
Meta has announced plans to raise up to $95bn (£71bn) through share sales to fund its AI expansion, as soaring infrastructure costs put pressure on the Facebook owner’s cash flow. The tech giant said on Monday it would raise $35m through public equity offerings, followed by a further $60bn through a programme allowing it to [...]
Meta, the parent company of Facebook, has announced plans to raise up to $95 billion through share sales to fund its AI expansion, as soaring infrastructure costs are putting pressure on the company's cash flow. The tech giant will raise $35 million through public equity offerings, followed by $60 billion through a program allowing it to sell shares at market prices.
Major chipmakers Nvidia, AMD, and Broadcom have expressed interest in purchasing up to $5 billion worth of shares. The fundraising, Meta's largest to date, will support investments in AI data centers, the Muse AI agent, and "personal superintelligence" according to CEO Mark Zuckerberg. Meta shares fell around 1.4% following the announcement, which comes just days after the firm raised its full-year capital expenditure forecast to between $135 billion and $145 billion.
While Meta beat Wall Street expectations with a 26% jump in revenue to $64.6 billion, spending increased faster, with total costs jumping 68% to $51.6 billion and free cash flow turning negative at $2.12 billion. The company disclosed around $825 billion in future spending commitments, largely linked to data centers and infrastructure.
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