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

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According to The Information, Meta plans to sell up to $95 billion in stock to fund its AI infrastructure buildout, including $22.5 billion from Class A common stock, $12.5 billion from depositary shares, and the remaining $60 billion from ongoing public market sales after Class C shares are listed, expected to begin as early as Q1 2027.

Why it matters

The original piece breaks down Meta's three-class share offering structure and its non-voting design, showing readers how this massive AI spending can be raised without touching Zuckerberg's control.

Article · English

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.

About $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 they're 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.

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

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Source: The Decoder · the-decoder.com