Meta Platforms plans to raise $95 billion through equity markets to finance its artificial intelligence expansion, with chip manufacturers Nvidia, Advanced Micro Devices and Broadcom indicating interest in purchasing up to $5 billion in shares each as technology companies race to secure computing infrastructure. The proposed fundraising underscores the capital required to compete in advanced AI as Meta expands its data centres, develops AI agents and pursues superintelligence capabilities.
The company will initially raise $35 billion through underwritten public equity offerings, followed by another $60 billion through an at-the-market programme, which allows a company to sell shares into the market over time. Nvidia, AMD and Broadcom have indicated interest in the purchases, though the disclosure does not establish that the chipmakers have committed to the transactions.
Meta said it will use the investments to support emerging AI opportunities across its family of applications, its Muse AI agent and its data centre business. The company is building four superclusters, each with more than one gigawatt of capacity, and expects to nearly double its total infrastructure capacity in 2026 compared with the previous year. The company now expects full-year capital spending of between $135 billion and $145 billion, raising the lower end of its previous forecast from $130 billion.
Meta reported third-quarter revenue of $64.60 billion, up 26 percent year on year and above analysts' expectations of $63.37 billion. However, investors focused on the company's negative free cash flow and higher spending forecast. Its shares fell following the results and were down a further 1.6 percent in morning trading on Monday after the fundraising announcement. The proposed equity raise forms part of a broader financing strategy combining operating cash flow, investment-grade debt, partnerships and equity capital.
Meta's move comes amid a wider scramble for capital among technology companies expanding their AI infrastructure. Alphabet said in June it would seek to raise $85 billion, while SpaceX has closed $40 billion in debt financing to purchase graphics processing units. For Meta, the challenge is to finance that expansion while convincing investors that the spending will generate sufficient returns, particularly as shareholders already question the effect of those investments on cash generation.
For Nigerian savers and investors, Meta's massive capital requirements illustrate how global technology companies are reshaping financial markets and competing fiercely for investment resources that could otherwise be deployed elsewhere.