Meta lifts AI share sale to a record $97.5 billion, about Rs 27 trillion; Nvidia to invest $3 billion

Meta Platforms has raised its planned share sales to $97.5 billion, the largest in its history, to pay for artificial intelligence data centres and infrastructure, Reuters reported on Tuesday, 27 October. That is about Rs 27 trillion at today's interbank rate of Rs 276.80 to the dollar.

How the $97.5 billion breaks down

Nvidia, AMD and Broadcom have shown interest in buying up to $5 billion of Class A shares between them, and Nvidia separately said it will invest $3 billion. Reuters noted the worry this raises about circular money in AI: chip suppliers are helping fund one of their biggest customers.

Why Meta needs the money

• Spending commitments: about $825 billion of future spending, mostly on data centres, AI infrastructure and cloud computing.
• Cash burn: Meta burned $2.12 billion in the July to September quarter, its first negative free cash flow in more than a decade, against $10.63 billion of positive free cash flow a year earlier.
• Balance sheet: $82.45 billion in cash and marketable securities and $80.92 billion of long-term debt on 30 September.
• Capex guidance: last week it raised the bottom of its 2026 capital spending forecast, to $135 billion to $145 billion.

Meta is racing OpenAI and Anthropic, and its consumer AI agent, Muse, has had an early following. Alphabet raised its own equity offerings to $84.75 billion in June, so Meta's plan is now the bigger of the two.

The share split and Zuckerberg

Meta plans to issue non-voting Class C shares in January 2027, in effect a two-for-one split, which it can use for acquisitions and staff pay while Mark Zuckerberg keeps control. Zuckerberg will get Class C shares he can sell to help pay a possible California billionaire wealth tax, in return for committing to stay in the state.

Meta's stock closed nearly 2% lower at $630.56 on Monday. Analysts at William Blair said investors would "continue to question the financing and potential for future capital raises", though they expect Meta to build a profitable AI business in the end.

What it means in Pakistan

Pakistani investors cannot buy Meta on the PSX, but many hold US shares through foreign brokers or funds. Any gain on sale is taxable in Pakistan for residents: estimate it with our capital gains tax calculator, and convert dollar amounts with the currency converter.