Meta launches $35-billion stock offering to fund AI expansion
Also plans to launch separate at-the-market share sale program of up to $60-billion after non-voting Class C shares begin trading
Meta Platforms META-Q on Monday launched public offerings of about US$35-billion in common stock and convertible preferred stock, as the Facebook parent seeks to finance its costly AI expansion.
The social media company also said it plans to launch a separate at-the-market share sale program of up to US$60-billion after its new non-voting Class C shares begin trading, which is expected in the first quarter of 2027.
The fundraising plans come as Meta ramps up spending on data centres, computing capacity and AI products to compete with rival AI heavyweights OpenAI and Anthropic.
Meta had cash, cash equivalents and marketable securities of US$82.45-billion, slightly exceeding its long-term debt of US$80.92-billion as of Sept. 30, according to its quarterly filing from last week.
The company has committed to spend about US$825-billion, primarily driven by its growing investments in data centres, AI-related infrastructure and cloud computing power.