Key facts
- Meta Platforms is reportedly considering a large equity sale.
- The company may sell tens of billions of dollars in new stock.
- Funds are intended to finance AI infrastructure investments.
- Meta's stock dropped following the report.
- The company has not officially confirmed the plans.
Meta Platforms is reportedly considering a substantial equity offering, potentially selling tens of billions of dollars in new stock to fund its significant investments in artificial intelligence infrastructure. This move follows Alphabet's successful $85 billion equity raising and comes as Meta plans to sharply boost its AI-related capital expenditures. Company executives are exploring "creative" ways to raise cash, including structures similar to Alphabet's convertible preferred issuance. The news sent Meta's stock plunging to its lowest level since early April. Meta has also recently borrowed $55 billion and halted share buybacks. The company has not confirmed the plans, with a spokesperson calling the talks "pure speculation" but acknowledging the need for flexible capital raising to support AI opportunities. Goldman Sachs is reportedly in a strong position to win the mandate, having led Google's deal. Other major tech companies and AI groups like SpaceX, Anthropic, and OpenAI are also planning significant capital raises. Meta hasn't yet hired banks and may not ultimately issue new stock, the FT reported, citing three people familiar with the discussions.
