Nvidia, AMD, and Broadcom have expressed non-binding interest in purchasing up to $5 billion in Meta shares combined, the company announced Monday.
The potential investment is part of Meta's new $95 billion financing plan as the company expands its AI infrastructure.
Meta's financing plan consists of approximately $22.5 billion of Class A common stock and $12.5 billion in preferred stock. The common stock offering will be conducted through forward sale agreements with Morgan Stanley and Goldman Sachs, with Meta expecting to receive the proceeds upon settlement, potentially as late as November 2027. Meta also plans a future $60 billion at-the-market offering once the company's previously announced Class C common stock begins trading.
The new Class C shares would allow Meta to raise money without diluting shareholders' voting power, helping CEO Mark Zuckerberg retain control of the company, The Latent previously reported.
However, it has yet to enter into any agreement for the ATM program, and the timing, size, and terms are yet to be established. Such a program is not expected to commence until the first quarter of 2027, and there is no guarantee it will take place, Meta said.
Nvidia, AMD, and Broadcom indicated an interest in the common stock offering separately and not jointly, at the same price and on the same terms and conditions as the other purchasers.
Investing in AI
Meta said artificial intelligence is creating significant opportunities for the firm across its core business and new products, including the recently launched Muse and Muse Wonder.
"We hit major milestones this quarter toward delivering personal superintelligence for everyone," Zuckerberg said earlier this month, describing Muse Wonder as its first frontier model.
The firm said Monday that it is therefore investing to expand the infrastructure and compute capacity it needs to support these opportunities and "bring personal superintelligence to billions of people and businesses."
Meta expects total capital expenditures of $135 billion to $145 billion this year, with investments funded through a mix of operating cash flow, investment-grade debt, strategic partnerships, and equity capital.
Meta reported a 26% year-over-year increase in third-quarter revenue to $64.6 billion earlier this month, although operating profit fell 37% to just under $13 billion, largely due to a $9.89 billion charge related to a legal settlement. Free cash flow also turned negative at $2.12 billion, compared with positive free cash flow of $10.63 billion a year earlier, as capital expenditure surged.
Meta currently owns data centers in 23 U.S. states. It is also constructing four "superclusters" with more than one gigawatt of capacity each, and says it is on track to nearly double total infrastructure capacity in 2026.