Photo: IMEN BEN YOUSSEF / AFP / Getty Images
Meta plans to raise $95 billion to fund its growing investments in artificial intelligence. The company intends to gather $35 billion through public stock offerings and another $60 billion through additional share sales. This move comes as Meta projects up to $145 billion in capital spending this year to expand its AI infrastructure. The announcement follows a seven percent drop in Meta's shares on Thursday after its latest earnings report.
According to Dealroom, Meta's third-quarter revenue rose 26% to $64.6 billion, surpassing Wall Street's estimates. However, the company reported a $2.12 billion deficit in free cash flow, down from a positive $10.63 billion a year earlier. To support its AI expansion, Meta announced a new class of nonvoting Class C stock, which will help fund infrastructure, acquisitions, and employee compensation without diluting CEO Mark Zuckerberg's control.
The nonvoting shares will be distributed as a dividend, effectively a two-for-one split, with trading set to begin in January 2027. This structure mirrors a strategy used by Alphabet in 2004, allowing founders to maintain control while raising capital.
CNBC reported that Meta's shares dropped more than 5% after news of the potential stock offering to fund AI investments. A Meta spokesperson described the report as "pure speculation," emphasizing the company's focus on raising capital flexibly to support AI opportunities.
Meta's AI agent, Muse, has gained over 10 million users in the U.S. and Canada within six weeks, according to Stocks Down Under. The company aims to scale Muse further, anchoring its consumer push on this AI development.