Meta is raising $35 billion to finance AI infrastructure — plans to raise an additional $60 billion in 2027

Meta Platforms' shares rose 1% after having lost as much as 4% at the start of the trading session. The initial decline was triggered by the company's plan to issue securities worth approximately $35 billion. The funds raised are intended to be used for expanding artificial intelligence (AI) infrastructure. In addition, Meta has presented a plan for an additional offering of non-voting shares worth approximately $60 billion in 2027.

As part of the current raise, the company plans to place $22.5 billion worth of Class A common stock through forward sale agreements, as well as issue approximately $12.5 billion worth of mandatorily convertible preferred shares. According to StreetInsider, the funds will be used for general corporate purposes, including investments in AI infrastructure.

Nvidia, Advanced Micro Devices and Broadcom have expressed non-binding interest in purchasing up to a combined $5 billion worth of Class A shares. The offering will be available to them at the same price and on the same terms as to other investors. The securities placement is being led by Morgan Stanley and Goldman Sachs. Meta also plans to grant underwriters a 30-day option to purchase additional securities, including the ability to acquire up to $3.375 billion in additional Class A shares.

The capital-raising plan comes against the backdrop of Meta's large-scale investment plans. The company forecasts spending $135–145 billion on capital expenditures in 2026. These costs reflect the high price of expanding the computing infrastructure needed to build AI models and services.

At the same time, Meta's financial position remains strong. The company generated $97 billion in operating cash flow during the first nine months of 2026, while total cash, cash equivalents and marketable securities stood at approximately $82 billion at the end of September. However, due to rising capital expenditures, free cash flow turned negative in the third quarter.

Meta also plans an additional offering of non-voting Class C shares worth approximately $60 billion in the first quarter of 2027. The company has not yet finalized an agreement for this program. The preferred shares from the current offering are expected to automatically convert into Class A or Class C common stock by August 15, 2029. Meta plans to list the corresponding depositary shares on Nasdaq under the ticker METAM.

These capital-raising plans illustrate how the AI investment race is reshaping funding strategies even for highly profitable technology companies. Although Meta's advertising business generates substantial cash flow, rising infrastructure spending is creating a need for additional financing.

Issuing non-voting shares will allow the company to raise capital while preserving control for CEO Mark Zuckerberg and other existing voting shareholders. For investors, the key question remains whether the expected long-term returns from AI will justify the high costs of expansion and the potential dilution caused by the issuance of new shares.