Meta Platforms on Tuesday raised the planned size of its largest-ever equity offerings to $97.5 billion, as the social media giant taps the public market to aggressively expand its AI infrastructure.

The fundraising plan, among the biggest by an AI company, has also drawn interest of up to $5 billion in total from Nvidia, Advanced Micro Devices and Broadcom for Class A common shares.

Their funding interest adds to concerns about an increasingly circular flow of capital in the AI industry, as chip suppliers help finance the expansion of one of their biggest customers. Meta has been pouring money into chips and data centers to compete better with OpenAI and Anthropic.

Meta now plans to raise $25 billion in common stock at $625 per share, compared with $22.5 billion disclosed on Monday. It also priced 250 million convertible preferred depositary shares at $50 apiece, for a total offering value of $12.5 billion.

The Facebook parent’s shares closed down nearly 2% at $630.56 on Monday. The stock was down about 1% on Tuesday.

The social media company also has a separate program to sell up to $60 billion in shares over time at prevailing market prices. While Meta has not yet finalized the timing and terms for its at-the-market offering, it expects the sale to begin after its planned non-voting Class C shares start trading in the first quarter of 2027.

“We expect investors to continue to question the financing and potential for future capital raises,” William Blair analysts said on Monday.

“Overall, we believe the financing reinforces both Meta’s confidence in the long-term returns from AI investment and the increasingly capital-intensive nature of pursuing that opportunity.”On Tuesday, Nvidia and AMD separately announced investments of $3 billion and $1 billion, respectively, in Meta’s equity offering.

Meta’s latest fundraising further underscores a shift among companies increasingly tapping debt markets and raising equity to bolster their AI infrastructure, after previously relying on cash to fund their investments. Alphabet had increased its equity offerings to $84.75 billion in June.

SpaceX on Monday said an affiliate of Apollo Global Management will buy AI chips and server hardware and lease them to the rockets-to-AI firm, in a deal with total principal payments of about $40 billion.

Burning cash Meta has committed to spending about $825 billion in the future, driven primarily by growing investments in data centers, AI-related infrastructure, and cloud computing power. But the aggressive expansion has eroded its historically strong free cash flow.

The company reported a $2.12 billion cash burn in the third quarter, its first negative free cash flow in over a decade, compared with a positive cash flow of $10.63 billion a year ago.

Still, the early popularity of its consumer-focused AI agent Muse and release of a competitive new series of AI models have helped partly justify Meta’s aggressive investments.

“We believe that Meta will ultimately produce a profitable AI business and its returns longer-term should help the company diversify, although the path may not be linear,” William Blair analysts said.

The company had $82.45 billion in cash, cash equivalents, and marketable securities and $80.92 billion in long-term debt as of September 30, according to its latest quarterly filing.

Last week, Meta raised the lower end of its annual capital expenditure forecast to $135 billion to $145 billion.

The company said it would issue Class C common stock in January 2027, effectively creating a two-for-one split, to fund acquisitions and retain top talent while maintaining CEO Mark Zuckerberg’s control.

Meta agreed to grant Zuckerberg Class C shares he can sell to help pay a potential California billionaire wealth tax, in exchange for his commitment to remain in California.