Meta intends to sell up to $95 billion worth of new stock to finance its artificial intelligence infrastructure expansion. The company will raise $22.5 billion through the sale of Class A common stock and an additional $12.5 billion via depositary shares representing fractions of preferred stock. The remaining $60 billion is expected to come from open market sales once new Class C shares begin trading, likely no earlier than the first quarter of 2027. These Class C shares carry no voting rights, allowing the firm to raise capital without diluting the control held by CEO Mark Zuckerberg and entities he controls. Nvidia, AMD, and Broadcom have indicated non-binding interest in purchasing up to $5 billion of this new equity.
This financing strategy addresses the substantial capital required to build the data centres and compute clusters necessary for training large language models. The structure of the share issuance specifically protects existing voting power while providing the liquidity needed for long-term hardware investment. The timeline for the bulk of the funding suggests a multi-year commitment to expanding technical capacity rather than an immediate shift in market strategy.
* Class C shares trade without voting rights to preserve Zuckerberg’s control
* Preferred shares convert to common stock in August 2029 unless earlier converted
* Nvidia, AMD, and Broadcom are potential buyers for up to $5 billion
