Meta (META.US) AI spending “ammo depot” expands again! Proposed equity financing of 95 billion US dollars

The Zhitong Finance App learned that Meta (META.US) is seeking equity financing of up to 95 billion US dollars to fund its artificial intelligence (AI) expenses. The company issued a statement on Monday saying it will issue approximately $35 billion in common shares and preferred shares — about $22.5 billion in Class A common shares through forward sale agreements, and about $12.5 billion in Class A compulsory convertible preferred stock depository shares.

Meta said the net raised capital from these two offerings will be used for general corporate purposes, including artificial intelligence infrastructure construction. It is worth mentioning that Nvidia (NVDA.US), AMD (AMD.US), and Broadcom (AVGO.US) intend to collectively subscribe up to $5 billion of Class A common stock.

Additionally, Meta said it will raise up to $60 billion through the “Market Price Sale (ATM)” program after commencing trading of its Class C common shares (as early as the first quarter of 2027). The plan allows companies to sell shares on the open market from time to time.

At the time of the launch of this financing plan, Meta is increasing its investment in data centers, computing power, and AI products to compete with competitors in the AI field such as OpenAI and Anthropic. Meta said, “AI is creating significant opportunities for Meta's core business as well as new products and services. Meta's investment in AI has yielded tangible returns, with increased user activity, improved advertising effectiveness, and increased monetization capabilities.”

According to Meta, AI investment has brought real returns by increasing user engagement, improving advertising performance, and improving monetization efficiency. In the future, it will also invest in businesses such as personal superintelligence, consumer-grade and enterprise-grade AI agents, and AI glasses. The company plans to fund related investments through various means such as operating cash flow, investment-grade debt, strategic partnerships, and equity capital.

Meta said in its third-quarter earnings report released last week that it expects capital expenditure of $135 billion to $145 billion in 2026. In the first three quarters of 2026, the company's operating cash flow was US$97 billion; by the end of the third quarter, cash, cash equivalents and marketable securities were approximately US$82 billion.

Additionally, Meta has agreed to spend about $825 billion on various leases and contracts in the future, many of which are closely linked to the huge AI computing power resources and certain energy type infrastructure required for the Muse led global AI intelligence frenzy.

Although Meta continues to heavily increase its AI spending, at least 13 Wall Street financial giants announced increases in Meta target price after the company released its earnings report, which is enough to show that the company's growth prospects are still being recognized even as AI capital expenditure requirements become huge. For example, Bernstein and Morgan Stanley both expressed optimism about Meta's artificial intelligence business prospects. The two investment banks believe that Meta's core advertising business continues to grow strongly, and the newly launched Muse Personal Intelligence Assistant has shown initial commercialization potential, which is expected to open up new revenue streams for the company other than advertising. However, as the scale of AI infrastructure investment continues to expand, huge capital expenditure and future financing needs are still the main risks investors are concerned about.