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Meta Plans Massive Stock Sale to Fund AI Projects

Updated 8:04 AM ET · 8:35 AM ETConfirmed

Business Desk

In Short: Meta plans to raise $95 billion through a combination of public stock offerings and additional share sales to fund its ambitious artificial intelligence (AI) projects, according to reports.

Meta's third-quarter revenue rose 26% to $64.6 billion, surpassing Wall Street's estimates, but the company's shares dropped more than 5% after news of the potential stock offering.

To support its AI expansion, Meta announced a new class of nonvoting Class C stock, which will help fund infrastructure, acquisitions, and employee compensation without diluting CEO Mark Zuckerberg's control.

Meta projects up to $145 billion in capital spending this year to expand its AI infrastructure.

A Meta spokesperson described the report as 'pure speculation,' emphasizing the company's focus on raising capital flexibly to support AI opportunities.

In other news, the US-controlled Board of Peace unveiled a six-month plan for the reconstruction of Gaza, with its envoys telling representatives from dozens of countries that they will need $2.45 billion to implement their first 66 projects.

There are also projects aimed at disarming Hamas, including the clearance of tunnels, a weapons buy-back program, mobilizing the International Stabilization Force, and training a new Gaza police force.

In related infrastructure news, the United Kingdom will need to invest heavily in expanding its electricity grid to meet rising power demand and ensure that new renewable energy projects can connect to it.

Investment will contribute to new pylons, subsea cables, and converter stations to connect the country’s impressive pipeline of wind and solar energy projects.

What this adds

Background

What's confirmed

• Meta's third-quarter revenue rose 26% to $64.6 billion, surpassing Wall Street's estimates, but the company's shares dropped more than 5% after news of the potential stock offering.
• To support its AI expansion, Meta announced a new class of nonvoting Class C stock, which will help fund infrastructure, acquisitions, and employee compensation without diluting CEO Mark Zuckerberg's control.
• Meta projects up to $145 billion in capital spending this year to expand its AI infrastructure.
• A Meta spokesperson described the report as 'pure speculation,' emphasizing the company's focus on raising capital flexibly to support AI opportunities.
• In other news, the US-controlled Board of Peace unveiled a six-month plan for the reconstruction of Gaza, with its envoys telling representatives from dozens of countries that they will need $2.45 billion to implement their first 66 projects.
• There are also projects aimed at disarming Hamas, including the clearance of tunnels, a weapons buy-back program, mobilizing the International Stabilization Force, and training a new Gaza police force.
• In related infrastructure news, the United Kingdom will need to invest heavily in expanding its electricity grid to meet rising power demand and ensure that new renewable energy projects can connect to it.
• Investment will contribute to new pylons, subsea cables, and converter stations to connect the country’s impressive pipeline of wind and solar energy projects.

What's still developing

• The company intends to gather $35 billion through public stock offerings and another $60 billion through additional share sales.
• Click here to see Canada's most comprehensive listing of projects in conceptual and planning stages Click here to see Canada's most comprehensive listing of projects in conceptual and planning stages OTTAWA – Ottawa’s retaliatory tariffs on American goods took effect just after midnight EDT on Tuesday, responding to the 50 per cent tariffs Washington hit Canada with last month.
• Last week, The Times of Israel first revealed the projects as well as the plan for Wednesday’s briefing.
• NCAG chief commissioner Ali Shaath said the top priority would be projects to prepare Gaza for the winter as Board of Peace officials received warnings from Israeli meteorological experts who forecast an earlier winter this year, with more extreme conditions than normal, two sources familiar with the matter said.
• Uplift and empower the community. - Howell Township, where a developer is proposing a $1-billion data center, considers a six-month moratorium on such projects. - While on a bus trip to see data centers that was organized by DTE Energy, a township property owner writes that he spoke with the utility's "head cheese" about the timing of the approval process. - Learn how you can weigh in on the Howell Township data center proposal with Planet Detroit's tips for civic action.
• Discussions seemed to fizzle in June and July: Kilpela told Planet Detroit the developers “ghosted” officials before returning in August to try to advance the project.
• French debt is projected to rise to nearly 122% of the country’s gross domestic product next year, despite billions of euros in planned spending cuts.
• President Lee Jae-myung immediately pushed back on X, formerly Twitter, writing that "among the investment projects announced by the U.S., the Alaska LNG project will proceed only on the premise that its commercial viability is confirmed and that it complies with the Republic of Korea's legal procedures."
• "Today's announcement is not the end but rather a new beginning."
• Chrome and its open-source project, Chromium, are, by scale, among the most complex open-source projects on the planet.

Sources

• Theconversationlink
• Dailysabahlink
• Calcalistechlink
• Wvoclink
• Canadalink
• Lbpostlink
• Timesofisraellink
• Oilpricelink
• Planetdetroitlink
• Courthousenewslink
• Enlink
• Zdnetlink
• WarpBeat — background on Meta Plans Massive Stock Sale to Fund AI Projects link
• WarpBeat — background on Wall Street Banks to Sell Billions in Stock to Fund AI link
• TRADING NEWS — video link