Meta Platforms on Monday launched about $35 billion in public stock offerings and laid out a plan for as much as $60 billion more, putting the Facebook parent on course for a record $95 billion equity raise to finance its accelerating artificial-intelligence buildout.
The immediate transaction combines $22.5 billion of Class A common stock with about $12.5 billion of depositary shares tied to mandatory convertible preferred stock, according to Meta’s announcement. The company separately plans an at-the-market program of roughly $60 billion after its new, nonvoting Class C shares begin trading, which it expects in the first quarter of 2027. Meta stressed that it has not yet entered an agreement for that program and has not fixed its timing, terms or actual volume.
The distinction matters: the $35 billion offering is underway, while the larger follow-on program remains a plan that could be reduced, delayed or abandoned. Meta also granted underwriters options that could increase the initial offerings. In the common-stock component, Meta expects to use forward-sale agreements and receive cash later when those agreements settle, rather than receiving all proceeds immediately.
The launch is a material step beyond the financing flexibility described in TAQ’s earlier coverage: Meta has moved from creating a nonvoting stock class to actively offering securities and identifying a potential second wave of sales.
A cash-intensive turn
The scale signals a major change in how one of America’s largest technology companies is funding AI. Meta historically generated enough cash to finance investment and buy back shares, but its latest results show that capital spending reached $34.91 billion in the third quarter and free cash flow fell to negative $2.12 billion. The company still held $82.45 billion in cash, equivalents and marketable securities at Sept. 30 and generated $97 billion in operating cash flow during the first nine months of 2026.
Meta expects 2026 capital expenditures of $135 billion to $145 billion. It says the money is needed for data centers, computing capacity and products ranging from AI agents to smart glasses. Independent reports from Reuters and WSJ confirmed the offering structure and the potential $95 billion total. Reuters described it as Meta’s largest-ever equity fundraising and reported that the company’s shares were down about 1.4% in morning trading.
Nvidia, Advanced Micro Devices and Broadcom have indicated interest in buying as much as $5 billion of the Class A offering in aggregate. Those expressions are not commitments: Meta said each chipmaker could buy more, less or nothing, and the underwriters could allocate them fewer shares or none. If completed, the purchases would deepen the financial links between Meta and three key suppliers to the AI infrastructure boom.
What shareholders face next
Equity financing avoids adding the full amount to Meta’s debt load, but issuing large volumes of new shares can dilute existing shareholders’ economic interests. The ultimate effect cannot yet be calculated because the offering prices, forward settlements and future Class C sales are not all fixed. The preferred securities are scheduled to convert into common shares in 2029 under a formula that depends on market prices and other adjustments.
The nonvoting Class C structure also allows Meta to raise capital without directly reducing Chief Executive Mark Zuckerberg’s voting control. A recent filing says Zuckerberg controlled about 56.1% of the company’s voting power as of the record date, while the new class was designed in part to support financing without the same voting dilution.
Investors will next watch the pricing and completion of the two current offerings, the volume and timing of any forward settlements, and whether Meta actually establishes the $60 billion at-the-market program. The announcement confirms the company is no longer relying on operating cash alone for its AI expansion—and is willing to sell a historic amount of equity to keep building.
