Meta completed an upsized $25 billion share offering. Investor orders were five times the number of shares available.
The offering is part of a broader fundraising strategy reported to total as much as $97.5 billion, aimed at financing the company’s extensive investments in AI infrastructure. Strategic partners Nvidia and AMD backed the offering. Nvidia committed $3 billion, and AMD committed $1 billion.
Meta’s recent earnings report highlighted heavy AI spending and negative free cash flow. The company is raising funds to support its long-term AI ambitions.
Meta priced the shares at $625. The stock closed below the offering price on its first day of trading and continued to fall. The market response was mixed, with investor demand for Meta’s AI strategy offset by concerns about share dilution.