Super Micro Computer to raise $7 billion in equity offerings to meet AI server demand

Super Micro Computer said on Tuesday it would raise $7 billion through a series of equity and equity-linked financing transactions to fund the purchase of components needed to meet the growing demand ‌for ⁠its advanced ⁠AI servers.

The company said it will use the proceeds to fulfill orders worth about $39 billion for its advanced AI servers from more than 20 customers.

AI infrastructure firms have seen accelerated demand as tech companies and ⁠cloud providers ‌ramp up investments in data centers to support large language models ⁠and other AI applications. Last week, Alphabet moved to raise $84.75 billion in upsized equity offerings.


The financing package will include sale of about $3.75 billion in depositary shares and $1.25 billion in common stock to underwriters. Shares of the AI server maker ‌fell 8% in extended trading.

Super Micro also plans to sell shares worth ​up ​to $2 billion in ⁠an at-the-market offering not before the third quarter.

The company said it may also use a ​portion of the net proceeds for other purposes, including repayment of debt, additions to working capital and capital expenditures.