Meta launches $35 billion stock sale as first step in $95 billion AI equity plan

Meta Platforms on Oct 26 launched about $35 billion of underwritten stock offerings, the first step in a plan to raise up to $95 billion in equity for AI infrastructure and what it calls personal superintelligence [1][2].

• The offerings are $22.5 billion of Class A common stock and about $12.5 billion of mandatory convertible preferred stock, sold as 250 million depositary shares [1][3].
• The preferred stock's dividend and conversion terms will be set at pricing [1].
• Underwriters have a 30-day option to buy up to 37.5 million more depositary shares and $3.375 billion more Class A stock [1].
• Morgan Stanley and Goldman Sachs lead the deal; Meta receives the common-stock cash when it settles forward sale agreements with them, on or before Nov 19, 2027 [1][3].
• Nvidia, Advanced Micro Devices and Broadcom indicated non-binding interest in buying up to $5.0 billion of the Class A shares combined [1][3].
• Meta plans a further $60 billion at-the-market program, selling shares gradually at market prices, once its new non-voting Class C stock trades, not before the first quarter of 2027 [1].

Meta expects $135 billion to $145 billion of capital expenditures in 2026 and held about $82 billion of cash, cash equivalents and marketable securities at the end of the third quarter [1]. Meta shares rose 1.6% in premarket trading [2]. The Class C shares, distributed one-for-one to existing holders, are expected to begin trading in January 2027 [4].