Meta is planning a major fundraising effort to support its AI infrastructure buildout. The company could raise up to $95 billion through a mix of share offerings and sales on the open market, according to The Information.
Three channels for raising capital
The proposed financing combines different types of stock. Meta said about $22.5 billion would come from sales of Class A common stock, while another $12.5 billion would come from depositary shares.
Each depositary share represents one-twentieth of a new preferred share. Unless converted sooner, those preferred shares will automatically become common stock in August 2029.
The largest portion of the planned total, $60 billion, is expected from ongoing open-market sales. Those sales would begin once Meta's new Class C shares start trading, which is likely no earlier than the first quarter of 2027.
Class C shares preserve voting control
Meta already has two share classes with different voting power. Class A shares carry one vote each, while Class B shares carry ten votes each. Entities controlled by CEO Mark Zuckerberg hold most of the Class B shares.
The new Class C shares, announced last week, would carry no voting rights. That structure gives Meta a way to seek substantial new investment without diluting Zuckerberg's control through additional votes.
For investors, the planned sale is therefore about more than the amount of capital raised. The different share classes determine who can provide funds and how that financing affects voting power within the company.
Technology companies show interest
Meta's announcement said Nvidia, AMD, and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock. The interest is non-binding, so it does not establish that any of the companies will complete a purchase.
The stated interest also sits within a broader fundraising plan that includes common stock, depositary shares tied to preferred shares, and future open-market sales. Together, these routes could provide capital for the AI infrastructure buildout while the Class C structure leaves voting rights unchanged.
What the plan signals
The potential $95 billion raise is designed to support a large infrastructure effort, with much of the planned proceeds tied to shares that have not yet begun trading. The timing and scale of those sales will depend on the issuance of the new Class C stock and the subsequent market sales.
Meta's approach links its funding needs with its existing governance structure. It can seek outside investment through securities with different economic and voting features, while the plan's largest component is scheduled to come from open-market sales beginning no earlier than the first quarter of 2027.