Meta Plans Up to $95 Billion Raise to Fund AI Buildout

What happened

Reuters reported on October 26 that Meta said it plans to raise up to $95 billion by issuing shares to fund data centers, cloud computing capacity and AI infrastructure expansion. The company launched public offerings of about $35 billion the same day, covering common stock and convertible preferred stock.

Beyond the immediate offerings, Meta also plans an at-the-market program of up to $60 billion once its new non-voting Class C shares begin trading, expected in the first quarter of 2027. The arrangement for that program has not been finalized.

Meta said the fundraising will support its AI expansion and that its AI investments are already generating returns through increased engagement, improved advertising performance and increased monetization. After the announcement, Meta shares rose about 1.6% to 1.7% in premarket trading, according to CNBC and The Wall Street Journal.

Key facts

1. Immediate offerings:About $35 billion in public offerings, comprising $22.5 billion of Class A common stock and $12.5 billion of depositary shares representing mandatory convertible preferred stock.
2. Follow-up program:An at-the-market program of up to $60 billion in new non-voting Class C shares, expected to begin after the shares start trading in the first quarter of 2027; the arrangement has not been finalized.
3. Chipmaker interest:Nvidia, AMD and Broadcom have indicated interest in purchasing up to $5 billion of Meta Class A common stock.
4. Spending scale:Meta expects 2026 capital expenditure of $135–145 billion, after raising the lower end of the range last week; the company said it has committed about $825 billion in future spending, mainly for data centers and AI infrastructure.
5. Financial backdrop:As of September 30, Meta held $82.45 billion in cash, cash equivalents and marketable securities against $80.92 billion in long-term debt; third-quarter cash burn was $2.12 billion, its first negative free cash flow in more than a decade, versus positive $10.63 billion a year earlier; third-quarter revenue was $64.60 billion, above the $63.37 billion expected.