Meta looks to raise up to $95 billion from stock sales to fund its huge AI build-out

• Meta is seeking a major cash injection to fund its AI ambitions.
• The tech giant said on Monday it is looking to raise up to $95 billion from stock offerings.
• Tech firms are spending big on AI infrastructure as they try to win the superintelligence race.

The tech giant said in a Monday filing that it has launched about $35 billion in equity offerings, comprising around $22.5 billion of Class A common stock, and $12.5 billion in depositary shares representing preferred stock.

In an at-the-market offering, a company sells shares gradually into the market at the prevailing market price, instead of as a large block at a fixed price.

Meta said last week that it would introduce the new share class to help founder and CEO Mark Zuckerberg access the liquidity he may need to pay California’s proposed wealth tax without having to sell existing shares and erode his voting control over the company.

“AI is creating significant opportunities for Meta across its core business and new products and services,” the company said in a press release.

“Meta is investing to expand the infrastructure and compute capacity needed to support these opportunities and to bring personal superintelligence to billions of people and businesses,” it added.

Nvidia, AMD, and Broadcom have each expressed an interest in buying up to $5 billion of the common stock being offered, but those indications aren’t binding, so they might buy more or less, Meta said.

Meta stock swung during Monday’s premarket from 2% in the green to 0.4% in the red.

The company said it expects to incur $135 billion to $145 billion of capital expenditures this year. It highlighted $97 billion of operating cash flow for the first nine months of this year, and the roughly $82 billion of cash and other liquid assets it held at the end of September.

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