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

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Meta plans up to $95 billion in stock sales to fund 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.

The breakdown comes from a Meta announcement. About $22.5 billion will come from selling Class A common stock. Another $12.5 billion will come from depositary shares, each representing one-twentieth of a new preferred share. Unless they are converted earlier, those 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.

The share structure explains the design. Meta currently has Class A shares with one vote each and Class B shares with ten votes each, and 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. According to The Decoder, that lets Meta raise money without diluting Zuckerberg's control.

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

Key facts

  • Meta plans to sell up to $95 billion in new shares to fund its AI infrastructure buildout, a total attributed to The Information.
  • The split per Meta's announcement: about $22.5 billion in Class A common stock, $12.5 billion in depositary shares tied to a new preferred share, and $60 billion in ongoing open-market sales of new Class C shares.
  • The Class C shares have no voting rights and are likely to start trading no earlier than the first quarter of 2027; the preferred shares convert into common stock in August 2029 unless converted earlier.
  • Nvidia, AMD and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock.

Why it matters

The plan puts a number on how Meta intends to pay for AI infrastructure: up to $95 billion from equity, per The Information. The structure is as notable as the size. Roughly two thirds of the total ($60 billion of $95 billion) is tied to Class C shares that do not yet trade and carry no votes, so Meta can raise money without diluting Zuckerberg's control, as The Decoder puts it. Currently Class B shares carry ten votes each, and entities controlled by Zuckerberg hold most of them.

Who it affects

Existing Meta shareholders, who face new Class A, preferred and Class C shares entering the market. Zuckerberg, whose voting control is kept intact by the non-voting Class C design. Nvidia, AMD and Broadcom, which have expressed non-binding interest in buying up to $5 billion of the stock.

How to use it

This is a financing story, not a product, so there is nothing to adopt. For readers tracking it, the dates to watch are the first quarter of 2027 at the earliest, when Class C shares are likely to start trading and the $60 billion in open-market sales can begin, and August 2029, when the new preferred shares automatically convert into common stock unless converted earlier.

How solid is it

The $95 billion total is attributed to The Information; the Decoder article does not say Meta itself confirmed the total. The three-way breakdown ($22.5 billion, $12.5 billion and $60 billion, which add up to $95 billion) and the Nvidia, AMD and Broadcom interest come from a Meta announcement. The interest from the three chipmakers is explicitly non-binding.

Risks and caveats

The $95 billion is a ceiling ("up to"), not a committed raise. The Class C timing is given as "likely" no earlier than the first quarter of 2027. The article gives no share prices, share counts, dividend rate on the preferred shares or conversion ratio, and no timescale for the Class A and depositary-share sales. It does not say what specific projects the money funds, and it gives no reaction from investors, Zuckerberg or analysts. The chipmakers' interest comes with no commitments, per-company amounts or terms.