Super Micro Computer said it would raise $7 billion (£5.2bn) through equity and equity-linked transactions to fund the purchase of components for its advanced AI servers, in the latest move by tech companies to finance the costly build-out of infrastructure to power AI services.

Super Micro said it would use the proceeds of the transactions to fulfill AI server orders worth about $39bn from more than 20 customers.

The offerings are to consist of $5bn of underwritten deals and $2bn in an at-the-market programme that is to involve Super Micro selling shares directly into the open market beginning no earlier than in the third quarter, the company said.

Sales of Super Micro servers powered by Nvidia processors have surged amid a general surge in demand for AI data centre components.

In addition to components, Super Micro said a portion of the proceeds would also be used to pay for the equipment needed to manufacture the servers.

Proceeds may also go to general corporate purposes such as repaying debt, and capital expenditures, it said.

Shares in the company sank around 8 percent in after-hours trading following the announcement, before rebounding.

Last month Super Micro reported revenue that fell short of analysts’ predictions, which it attributed to a short-term delay as customers weren’t ready for its equipment.