Meta plans up to $95 billion in stock sales to fund its AI buildout

Meta plans to sell new stock to raise money for its AI infrastructure buildout, according to The Information. The company plans to sell up to $95 billion in shares across several tranches, including Class A common stock, depositary shares tied to preferred shares and future Class C shares. Meta also said Nvidia, AMD and Broadcom expressed non-binding interest in buying up to $5 billion in Meta stock.

How the $95 billion would be raised

$22.5 billion will come from selling Class A common stock, according to a Meta announcement. Another $12.5 billion will come from depositary shares, each representing one-twentieth of a new preferred share. Unless converted earlier, these preferred shares will automatically convert into common stock in August 2029. The remaining $60 billion will come from ongoing sales on the open market once new Class C shares start trading, likely no earlier than the first quarter of 2027.

Share classes and control

Meta currently has Class A shares with one vote each and Class B shares with ten votes each. Entities controlled by CEO Mark Zuckerberg hold most of the Class B shares. The Class C shares, which Meta announced last week, carry no voting rights. That lets Meta raise money without diluting Zuckerberg's control.

Potential buyers

According to the announcement, Nvidia, AMD and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock.

Sources: The Decoder