Meta Maps Out $95 Billion Share-Raising Plan to Finance Its AI Buildout

A two-stage funding plan

Meta Platforms said Monday, Oct. 26, that it had launched about $35 billion in concurrent underwritten offerings as part of a broader financing plan that could total as much as $95 billion. The current offerings comprise approximately $22.5 billion in Class A common stock and $12.5 billion in depositary shares representing mandatory convertible preferred stock, according to the company’s announcement. ^{[1] [2]}

The potential second stage is a separate at-the-market program of up to $60 billion in Meta’s previously announced Class C common shares. Meta says the program would begin only after Class C shares start trading, which it expects in the first quarter of 2027. The company has not signed an agreement for the program and has not determined its timing, size or terms; it also cautioned that it may never establish the program or sell shares under it. ^{[1] [2]}

Nvidia, Advanced Micro Devices and Broadcom each indicated interest in buying a combined maximum of $5 billion of the Class A shares in the current offering. Meta described those indications as nonbinding: any of the three companies, or the underwriters, could ultimately buy or sell fewer shares, or none. ^{[1] [3]}

AI spending is reshaping Meta’s financing

Meta says the capital plan supports continued investment in AI infrastructure and what it calls personal superintelligence, alongside consumer and business agents, enterprise products and AI-enabled glasses. The company said its AI investments are already contributing to user engagement and advertising performance, though those are company claims rather than a guarantee that the new spending will earn an adequate return. ^[1]

The funding push comes as the company forecasts $135 billion to $145 billion in 2026 capital expenditures, mainly for infrastructure and computing capacity. Meta’s third-quarter report showed $34.91 billion in capital expenditures, $82.45 billion in cash, cash equivalents and marketable securities at Sept. 30, and negative $2.12 billion in free cash flow for the quarter. ^{[4] [2]}

Reuters reported that Meta has committed about $825 billion in future spending, primarily related to data centers, AI infrastructure and cloud computing. The company is pursuing a mix of operating cash flow, investment-grade debt, strategic partnerships and equity capital, according to its financing announcement, rather than relying on the stock offerings alone. ^{[1] [2]}

What investors will watch

The participation of chip suppliers could create a feedback loop: companies selling the processors that power AI systems would also be potential investors in a major customer. The Associated Press reported that this arrangement has prompted concerns about circular financing, particularly if demand for AI computing or the returns from AI products disappoint. ^{[3] [2]}

Meta’s proposal is therefore both a funding plan and a test of investor confidence in the economics of the AI buildout. The immediate offerings are underway, but the much larger headline total depends on a future Class C sale that remains conditional and undefined. Results from Meta’s infrastructure investment, the final offering terms and whether the later program is established will determine how much capital is ultimately raised. ^{[1] [2] [3]}