Meta Raises AI Financing to $97.5 Billion; Nvidia and AMD Confirm Equity Stakes
Meta increased its Class A share offering to $25 billion, bringing the total raise to $97.5 billion. Nvidia and AMD confirmed $3 billion and $1 billion investments respectively, signaling deeper supply-chain ties.
US social media giant Meta announced on October 27 that it has expanded the scale of its funding drive for artificial intelligence infrastructure. The company decided to increase the size of its previously planned Class A common stock public offering from $22.5 billion to $25 billion. This adjustment raises the overall total of Meta's current financing effort from the initially announced $95 billion to $97.5 billion (approximately 129 trillion Korean won).
According to the final pricing, the offering price for Class A common shares was set at $625 per share, a discount of approximately 2.7% from the closing price of $642 on October 23, corresponding to an issuance volume of 40 million shares. Concurrently, the accompanying convertible preferred stock offering was finalized at $50 per share for 250 million shares.
Market response indicates strong demand. According to Bloomberg, subscription orders for this additional issuance reached approximately five times the volume offered. More than half of the shares were allocated to long-term investors and existing shareholders, with the top 15 institutional investors absorbing 70% of the total. The convertible preferred stock also saw several-fold oversubscription.
Key partners' investment intentions have translated into actual commitments. Nvidia confirmed it will invest $3 billion in Meta's current stock offering, while Advanced Micro Devices (AMD) confirmed a $1 billion investment. Nvidia CEO Jensen Huang stated that the move aims to "optimize compute infrastructure from end to end" and expand the partnership with Meta. This marks a further deepening of capital ties between AI chip suppliers and platform providers.
Meta had previously announced on October 26 a comprehensive financing plan including common stock, convertible preferred stock, and newly created non-voting Class C shares to support its AI infrastructure expansion and development of Personal Superintelligence. Analysis suggests that Meta's third-quarter free cash flow turning negative (a deficit of $2.12 billion) prompted the company to seek larger external funding to alleviate financial pressure.