Meta Platforms plans to raise $35bn through a stock offering to finance its artificial intelligence expansion, as the Facebook parent intensifies efforts to compete in the fast-growing AI market.
The proposed offering, disclosed in documents released by the US Securities and Exchange Commission on Monday, is part of a broader fundraising strategy that includes a separate stock sale of up to $60bn at a date yet to be announced.
The company said chipmakers Nvidia, AMD and Broadcom had indicated interest in purchasing up to $5bn worth of the common stock being offered. However, the indications are non-binding.
The fundraising follows Meta's creation of a new class of non-voting shares last week, a move the company said would give it greater flexibility to raise capital for its AI ambitions.
The new shares would allow Meta to raise funds without diluting the voting control of its founder and chief executive, Mark Zuckerberg.
Meta has been investing heavily in artificial intelligence infrastructure and capabilities, including the expansion of data centres needed to support its growing AI operations.
The spending has drawn investors' attention to whether the company's investments will deliver sufficient returns.
The fundraising also reflects the scale of capital required by major technology companies to compete in AI, particularly in developing and operating data centres and securing advanced computing chips.
Google's parent company, Alphabet, recently raised $85bn through equity offerings to finance its own AI data centre expansion.
Discussion0