Meta plans to sell new stock to fund its AI infrastructure buildout. The company aims to raise up to $95 billion through the sales, according to The Information.
A Meta announcement says about $22.5 billion will come from Class A common stock. Another $12.5 billion will come from depositary shares. Each depositary share represents one-twentieth of a new preferred share. Unless converted earlier, the preferred shares will automatically convert into common stock in August 2029.
Meta plans to raise the remaining $60 billion through ongoing sales on the open market after its new Class C shares start trading. Those sales depend on the shares becoming available for trading.
Read nextMeta plans non-voting shares to fund AI investmentNon-voting Class C shares protect Zuckerberg's 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, announced last week, have no voting rights. That allows Meta to raise money without diluting Zuckerberg's control.
According to Meta's announcement, Nvidia, AMD, and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock. Class C trading is likely to begin no earlier than the first quarter of 2027.
