Meta Platforms launched concurrent underwritten equity offerings on Monday that are the first part of a plan to raise up to $95 billion for artificial intelligence infrastructure, the company said. The initial tranche totals about $35 billion: roughly $22.5 billion in Class A common stock and another $12.5 billion in depositary shares, each representing a fraction of Series A mandatory convertible preferred stock.
The common stock is being sold through forward sale agreements with Morgan Stanley Capital Services and Goldman Sachs & Co., so Meta will not receive cash until those agreements settle on one or more dates on or before November 19, 2027. The depositary shares are expected to list on Nasdaq under the ticker "METAM" and convert automatically into Class A or Class C common stock around August 15, 2029. Underwriters can buy 37.5 million more depositary shares and an extra $3.375 billion of Class A stock within 30 days.
Meta also plans an at-the-market program for up to $60 billion of its non-voting Class C common stock, not expected to begin until the first quarter of 2027. No agreement has been signed, and the company cautioned that the program may not be established at all. If both pieces move forward, total equity financing would reach $95 billion.
Nvidia, Advanced Micro Devices and Broadcom have each indicated interest in buying up to $5 billion of the Class A common stock in aggregate at the same price as other investors. The indications are non-binding, so the chipmakers could buy more, fewer or no shares.
Meta's guidance puts 2026 capital expenditures at $135 billion to $145 billion; BigGo Finance reported the spending is targeted mainly at AI data centers, computing equipment and related infrastructure. Meta produced $97 billion in operating cash flow during the first three quarters of 2026, and its cash, cash equivalents and marketable securities totaled about $82 billion at the end of the third quarter. BigGo Finance reported third-quarter revenue of $64.6 billion, up 26% from a year earlier, and net income of $9.9 billion.
As of October 1, Chief Executive Mark Zuckerberg owned 13.4% of Meta's shares while controlling 60.6% of the votes, BigGo Finance reported. The planned non-voting Class C shares let Meta issue equity without reducing Zuckerberg's share of voting rights: those shares do not carry votes.
Meta said it will use net proceeds from the depositary share offering for general corporate purposes, while the common stock forward sale agreements will deliver cash when settled. The offering marks the first time Meta has raised equity on this scale for AI, BigGo Finance noted, signaling a shift toward external capital markets.
Shares were volatile around the announcement. BigGo Finance reported Friday's close at $642.62, a 0.96% decline, followed by a premarket drop of about 4% before the stock recovered. Quartz put the price at $650, up 1.2%, before Monday's open.
Sources
- Meta is raising up to $95 billion in equity to fund AI spending, Quartz
- Meta Plans Record $95B Equity Raise to Fund AI Expansion, Global Banking & Finance Review
- Meta Launches $35 Billion Equity Raise as $100 Billion AI Buildout Shifts to External Funding, BigGo Finance
To report an error in this article, write to corrections@venturistnews.com. Corrections log.
Sam Okafor covers capital markets, public listings and corporate finance for Venturist. He writes from filings, earnings releases and published reporting.