Meta has announced a plan to raise up to $95 billion in equity capital to cover the costs of developing artificial intelligence. The holding company addresses the market directly.
Meta’s race to AI
The plan envisages issuing new shares for 35 billion dollars through a direct public offering, consequently reducing the ownership stake of those who are already shareholders; furthermore, the company reserves the right to launch, without specifying the timing, a new maxi issue of Class C ordinary shares (without voting rights) for another 60 billion dollars.
The company emphasizes in a note that it intends to finance” investments in AI through a “balanced mix of operating cash flow, investment grade debt, strategic partnerships and equity capital”. The group is convinced that AI is already improving financial performance in cash flows with “tangible results through greater user engagement, better advertising performance and greater monetization”. All this in the face of unprecedented expenses that will now be partly financed by new shareholders.