Meta plans up to $95 billion equity raise to fund AI infrastructure expansion

Meta Platforms said it plans to raise up to $95 billion through equity fundraising as it expands AI infrastructure, Reuters reported on October 26. The plan combines about $35 billion of underwritten public offerings with a separate potential at-the-market share sale of up to $60 billion.

Two parts of the financing plan

Meta's investor-relations release said the current underwritten offerings comprise approximately $22.5 billion of Class A common stock and approximately $12.5 billion of depositary shares representing mandatory convertible preferred stock. It said Meta expects to grant underwriters over-allotment options, so the final amounts can differ from the initial offering sizes.

The additional $60 billion program is not an already completed sale. Meta said it plans to launch the at-the-market program after its previously announced non-voting Class C common stock begins trading, expected in the first quarter of 2027. The company said it has not entered into an agreement for that program and that its timing, size and terms have not been determined. Reuters also reported that Meta has not finalized the timing and terms.

AI spending and outside interest

Meta said it expects 2026 capital expenditures of $135 billion to $145 billion and intends to fund investment through operating cash flow, investment-grade debt, strategic partnerships and equity capital. Its release said the offerings support continued investment in AI infrastructure and personal superintelligence.

Reuters reported that Nvidia, AMD and Broadcom expressed interest in investing up to $5 billion in total for Class A shares. The chip suppliers' potential participation adds to concerns about a circular flow of capital in AI, because suppliers could help finance expansion by a major customer. Interest is not the same as a completed investment.

Cash-flow pressure and shareholder structure

Reuters reported that Meta recorded a $2.12 billion cash burn in the third quarter, its first negative free cash flow in more than a decade, compared with positive cash flow of $10.63 billion a year earlier. Meta's release reported $64.6 billion of third-quarter revenue and $9.9 billion of net income.

The release says the mandatory convertible preferred stock is expected to convert in 2029 under specified conditions. Meta has said the new Class C stock will help fund acquisitions and retain talent while maintaining Chief Executive Mark Zuckerberg's control. The planned $95 billion total is therefore a maximum announced plan, not cash already raised.

Sources

• Reuters: Meta launches $35 billion stock offering to fund AI expansion
• Meta Investor Relations: Offering and financing-plan announcement