Meta Launches $35 Billion Stock Offering as Part of Up to $95 Billion Equity Raise for AI

Meta Platforms announced on October 26 that it is raising up to about $95 billion in equity to fund its artificial intelligence build-out, launching public offerings of roughly $35 billion and outlining a separate $60 billion at-the-market program planned for next year.

How the raise is structured

• About $35 billion of public offerings of common stock and mandatory convertible preferred stock has launched
• Reports describe about $22.5 billion of that as Class A common stock sold through forward sale agreements, and about $12.5 billion as three-year mandatory convertible preferred stock
• A separate at-the-market program of up to $60 billion would sell the company's new non-voting Class C shares and is expected to begin in the first quarter of 2027, after those shares start trading
• Nvidia, AMD and Broadcom have indicated non-binding interest in buying up to $5 billion of Class A stock in aggregate, according to reports of Meta's announcement

Because the Class A shares are sold under forward sale agreements, Meta does not expect to receive the cash from them up front, but when the agreements are settled, which it intends to do before November 19 next year, according to coverage of the filing.

Why Meta is raising equity

Meta said the proceeds would go toward general corporate purposes, including AI infrastructure and what it calls personal superintelligence. The company expects 2026 capital expenditure of $135 billion to $145 billion, according to Reuters, and has committed roughly $825 billion overall.

The move follows Meta's third-quarter results, in which it reported negative free cash flow of $2.12 billion, its first in more than a decade. As of September 30 it held $82.45 billion in cash and securities against $80.92 billion in long-term debt.

Market reaction and context

Meta shares fell about 7% on the Thursday after its earnings report, when investors focused on spending plans, and were reported up in premarket trading after the equity announcement, according to a market note from ZeroHedge citing Bloomberg. Later quotes were mixed, so the day's net move is not yet clear.

Alphabet recently completed its own large equity raise, and the Financial Times earlier reported that Meta was weighing a stock sale. Meta's Class C share structure was first detailed alongside its third-quarter results.

The interest from Nvidia, AMD and Broadcom is non-binding, and the size and timing of the at-the-market program remain subject to change, as Meta has not yet entered into an agreement for it.