Meta launches $35B stock offering as part of $95B AI funding plan
Meta announced a $35 billion stock offering as part of a campaign to raise up to $95 billion in equity to fund its expanding AI infrastructure.
- Development: Meta launches $35B stock offering as part of $95B AI funding plan
- Core Takeaway: Meta announced a $35 billion stock offering as part of a campaign to raise up to $95 billion in equity to fund its expanding AI infrastructure.
- Context: Primary reporting aggregated across independent newsrooms and verified against CurrentDeck standards.
Meta announced a capital-raising campaign on Monday, October 26, 2026, seeking to raise up to $95 billion to support its investments in AI infrastructure and superintelligence. The tech giant launched an initial $35 billion in underwritten public equity offerings, backed by plans for an additional $60 billion with an at-the-market program.
Meta Details the Breakdown of the Initial $35 Billion Offering and Forward Sales
The first wave of fundraising is divided into components. Meta is offering $22.5 billion of Class A common stock sold through forward sale agreements, under which Meta delivers the shares and receives the money later, by November 19, 2027 at the latest. Because of the forward agreements, the company does not expect to receive any cash from the common stock sale at first.
The second offering is about $12.5 billion of mandatory convertible preferred stock. These shares pay a dividend and turn into common stock around August 15, 2029, with Meta setting the dividend rate when the shares are priced. Morgan Stanley and Goldman Sachs are running both sales, with underwriters holding the option to purchase up to an additional $3.375 billion in common stock and 37.5 million preferred shares within 30 days.
| Detail | Information |
|---|---|
| Total Planned Equity Raise | Up to $95 billion |
| Initial Offering Tranche | $35 billion |
| Class A Common Stock (Forward Sale) | $22.5 billion |
| Mandatory Convertible Preferred Stock | About $12.5 billion |
| Future At-the-Market Program (Class C) | $60 billion (launching January 2027) |
| Cornerstone Chip Supplier Interest | Up to $5 billion (Nvidia, AMD, Broadcom) |
Cornerstone Chip Suppliers Weigh In as Capital Expenditure Forecasts Rise
Three of Meta’s main chip suppliers—Nvidia, AMD, and Broadcom—have together shown interest in buying up to $5 billion of the common stock, though that interest is not binding. The announcement also comes just ahead of Anthropic's anticipated IPO and a few months after Alphabet's $85 billion offering and SpaceX's public market debut, with OpenAI also gearing up to go public next year.
Meta's planned investments will support emerging AI opportunities including its family of apps, its AI agent Muse, and its data center business. Last week, Meta posted third-quarter results showing revenue jumped 26% year-on-year to $64.60 billion versus the $63.37 billion analysts expected. However, investors focused more on the tech company's negative free cash flow and its higher full-year capital expenditure forecast, with full-year capex now expected to range from $135 billion to $145 billion, raising the bottom of the range from $130 billion.
Class C Shares and Future Spending Targets
The company also plans a separate programme to sell about $60 billion of nonvoting Class C shares on the open market from early 2027, when its new non-voting Class C common stock will start trading. Meta plans to balance funding for its investments through a mix of operating cash flow, investment-grade debt, partnerships, and equity capital.
Frequently Asked Questions
How much total money is Meta trying to raise?
Meta is planning to raise a total of up to $95 billion to support its investments in AI infrastructure and superintelligence.
Which chip suppliers are participating as cornerstone investors?
Nvidia, AMD, and Broadcom have expressed non-binding interest in collectively purchasing up to $5 billion worth of shares.
Following the announcement, Meta shares fell as much as 4% before recovering to trade about 1% higher on Monday.
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