Meta plans to raise $95 billion by selling new shares to pay for AI, and Nvidia says it will put in $3 billion. Existing shareholders should take note.
Meta said on Monday that it plans to raise a total of $95 billion to pay for its AI infrastructure. Nvidia has said it will invest $3 billion in the company. The money will come from selling new Meta shares, not from borrowing.
Meta will start with $35 billion in underwritten public offerings. That means banks help sell new shares to investors. After that, it plans to raise another $60 billion through an at-the-market program, which sells shares over time instead of all at once.
Nvidia, Advanced Micro Devices and Broadcom said they were interested in buying up to $5 billion in shares. Those are three major chip companies.
When a company sells new shares, each existing share becomes a slightly smaller slice of the whole company. This is called dilution. Anyone who owns Meta stock, including through a retirement fund, may be affected.
The size of the raise also shows that building AI is still very expensive.
Meta is selling up to $95 billion in new shares for AI, so current shareholders may see their stake diluted.
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