Meta Platforms Inc. (NASDAQ: META) has launched a roughly $35 billion stock offering and outlined plans for an additional share sale of up to $60 billion, creating a potential $95 billion fundraising program to finance its artificial intelligence expansion.
The company behind Facebook, Instagram and WhatsApp announced the financing plan on October 26 as it increases spending on data centers, computing capacity and AI products. The initial offering includes $22.5 billion in Class A common stock and $12.5 billion in depositary shares representing mandatory convertible preferred stock, according to Meta's official announcement.
Meta also plans to establish an at-the-market offering program of up to $60 billion when its new nonvoting Class C shares begin trading, potentially in the first quarter of 2027. The company has not finalized that program, and its timing, size and terms remain undecided.
Nvidia Corp. (NASDAQ: NVDA), Advanced Micro Devices Inc. (NASDAQ: AMD) and Broadcom Inc. (NASDAQ: AVGO) have expressed interest in purchasing up to $5 billion in aggregate of Meta's Class A common stock in the offering. The potential participation by chipmakers comes as Meta expands the computing infrastructure needed to develop and run AI systems.
Meta's $95 Billion Plan Comes as AI Spending Accelerates
Meta expects capital expenditure to reach between $135 billion and $145 billion in 2026, reflecting its investment in data centers, computing equipment and AI development. The planned fundraising would provide an additional source of capital as the company pursues its AI ambitions while continuing to operate its established advertising business.
The company intends to finance its investments through a combination of operating cash flow, investment-grade debt, strategic partnerships and equity capital. Meta reported $97 billion in operating cash flow during the first nine months of 2026 and held approximately $82 billion in cash, cash equivalents and marketable securities at the end of the third quarte.
The company said its AI investments are already improving user engagement, advertising performance and monetization. It is also pursuing new products involving AI agents, enterprise services and smart glasses.
Meta's efforts to expand its AI offerings have included making its Muse AI assistant available to more users, as detailed in Wealthier Today's coverage of Meta's Muse expansion. The company is seeking to translate its infrastructure spending into stronger engagement and new commercial opportunities.
The scale of the planned investment reflects a broader trend across the technology sector. Major cloud providers and AI developers are committing substantial sums to computing infrastructure, increasing scrutiny of whether future revenue will justify the cost.
What Meta's Stock Offerings Mean for Investors
The initial $35 billion offering will combine common equity with mandatory convertible preferred stock. The preferred securities are designed to convert into common shares under specified terms, while the separate planned $60 billion at-the-market program would allow Meta to sell Class C shares over time at prevailing market prices if the program is established.
Meta created the nonvoting Class C share structure to raise capital without giving those shares voting rights. The structure could allow the company to obtain additional equity funding while preserving the voting control held by existing shareholders with voting shares.
However, issuing additional shares can affect existing investors through dilution, depending on the securities issued and how they convert. The preferred offering and potential future Class C sales therefore have different implications from borrowing money, which creates repayment obligations rather than issuing equity.
Nvidia, AMD and Broadcom's potential participation would link the financing directly to companies supplying technology used in AI infrastructure. Their stated interest does not mean they have committed to purchase the full $5 billion, and final participation will depend on the offering terms.
Meta shares rose in premarket trading following the announcement. Investors will nevertheless be watching how the company balances its AI spending against shareholder returns and the performance of its core advertising business.
The proposed $95 billion fundraising program would give Meta another way to finance its AI expansion, but the full amount is not guaranteed to be raised. The initial offerings are underway, while the additional $60 billion program remains a plan whose final terms have not been determined.