Meta Platforms has unveiled plans to raise as much as $95 billion in equity financing to fund its expanding artificial intelligence operations. Shares of the company (NASDAQ: META) traded at $643.16, up 0.08%, after an earlier decline in the session. The financing structure combines an initial package of stock offerings with a separate program for subsequent sales.

Unlike debt financing, an equity raise of this scale sells ownership stakes rather than borrowed capital, and shares issued under the plan add to Meta's outstanding share count as they are sold. That structural difference makes the composition of each component — common stock, convertible preferred securities, and the later sale program — central to how the $95 billion ceiling translates into delivered capital.

$35 Billion in Initial Stock Offerings

The first stage of the plan consists of $35 billion in offerings split between common stock and mandatory convertible preferred securities. Roughly $22.5 billion will come through Class A common stock, with the remaining $12.5 billion raised via preferred shares. Together, these offerings form the opening phase of the company's equity financing plan.

The preferred component is structured as depositary shares representing Series A mandatory convertible preferred stock. Unlike common shares, these securities carry terms that require conversion into common equity. The common stock portion, meanwhile, provides investors with a separate route to participate in the initial financing.

Beyond the initial offerings, Meta intends to run an at-the-market stock sale program worth up to $60 billion. The company expects that program to begin no earlier than the first quarter of 2027. This second component accounts for the remainder of the announced fundraising ceiling. At-the-market programs differ from a single underwritten offering: they allow a company to sell shares incrementally at prevailing market prices over an extended period, so the timing and size of that $60 billion tranche will depend on how the program is actually used.

Nvidia, AMD and Broadcom Consider Share Purchases

Nvidia, AMD and Broadcom have expressed interest in purchasing shares through the initial offerings. Their combined potential purchases total up to $5 billion — a collective figure rather than $5 billion for each company. All three firms already supply chips for Meta's expanding computing operations.

The companies' stated interest does not represent a completed purchase of Meta shares. The announced amount therefore describes potential participation rather than capital already delivered through those purchases. Meta disclosed their interest alongside the of its initial common and preferred stock offerings.

The proposed participation ties Meta's financing plans to the companies supplying hardware for its computing infrastructure. However, the announcement identifies equity purchases only and does not describe new chip supply agreements. The fundraising details concern ownership securities and capital, rather than additional hardware orders. Whether the chipmakers' stated interest turns into completed purchases is one of the open questions heading into the closing of the initial offerings.

Proceeds to Support Muse, Apps and Infrastructure

Meta plans to deploy the proceeds across its core business and emerging artificial intelligence opportunities. Those activities include its family of applications, the Muse AI agent, and infrastructure development. The company continues to expand computing capacity alongside its work on consumer artificial intelligence products.

The Facebook parent operates its social applications while increasing spending on artificial intelligence infrastructure. Its broader financing approach also includes operating cash flow, investment-grade debt, and strategic partnerships. Equity capital joins those funding sources as Meta advances its expansion plans.

The announcement sets fundraising targets and describes securities for sale rather than confirming proceeds. Consequently, the full $95 billion remains a planned maximum spread across separate financing components, with the initial offerings and the later program following different schedules. The plan's next concrete checkpoints are the closing of the initial $35 billion offerings, the first sales under the at-the-market program from 2027 onward, and the conversion of the preferred shares into common equity — the steps that turn an announced ceiling into capital Meta can actually deploy.

This article is based on reporting by Blockonomi. Source: Meta Platforms (META) Stock: Plans Up to $95 Billion Equity Raise for AI Expansion