Meta (META) stock slid 2% Monday morning as the company said it plans to raise up to $95 billion through equity financing with an initial $35 billion raise in common and preferred stock to fund its aggressive AI infrastructure build-out.
Its main chip suppliers, Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO), expressed interest in purchasing up to $5 billion in aggregate of these shares, the company said.
The initial raise includes about $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock.
641.17 -1.45 (-0.23%)
As of 11:50:04 AM EDT. Market Open.
Meta said the capital raised will support continued momentum across its “core business and emerging AI opportunities.”
Those initiatives include its family of apps, AI agent Muse, and infrastructure build-out, among others.
Meta has been aggressively building out compute capacity and advancing its AI capabilities, with the recent launch of Muse, which has become a major consumer-facing hit.
(Reuters/Yves Herman/File Photo) ยท REUTERS / REUTERS
Ines Ferre is a Senior Business Reporter for Yahoo Finance.