Meta Platforms is expanding its planned equity fundraising to a record $97.5 billion as it increases investment in artificial intelligence infrastructure, including data centers, AI chips and computing capacity. The plan includes public offerings of common and preferred stock, alongside a proposed $60 billion at-the-market share-sale program that could begin in 2027.
The fundraising comes as Meta competes with OpenAI, Anthropic and other technology companies to build advanced AI models and products. While the company says its investments are already supporting advertising performance and engagement, the cost of developing AI infrastructure is putting greater pressure on its cash generation. The financing plan signals that Meta intends to use a combination of operating cash flow, equity, debt and strategic partnerships to support its expansion.
Key Takeaways
- Record fundraising plan: Meta has expanded its planned equity fundraising to $97.5 billion.
- Public offerings: The financing plan includes common stock and mandatory convertible preferred stock offerings totaling approximately $35 billion initially, with the common stock offering subsequently increased.
- Future share sales: Meta plans a separate at-the-market program of up to $60 billion, expected to begin after its new Class C shares start trading in the first quarter of 2027.
- AI infrastructure spending: Meta expects capital expenditures of $135 billion to $145 billion in 2026.
- Chipmaker participation: Nvidia has announced a $3 billion investment, while Nvidia, AMD and Broadcom have indicated interest in purchasing up to $5 billion in shares collectively.
- Financial pressure: Reuters reported that Meta recorded negative free cash flow of $2.12 billion in the third quarter, highlighting the growing cost of its AI expansion.
What Is Meta’s $97.5 Billion Fundraising Plan?
Meta’s plan combines current public offerings with a larger share-sale program that could be launched in the future.
According to the company’s October 26 announcement and subsequent Reuters reporting, the financing package consists of two main components.
| Fundraising component | Planned amount | Purpose |
|---|---|---|
| Common stock offering | Initially $22.5 billion; subsequently increased to $25 billion | Raise equity capital through a public offering |
| Mandatory convertible preferred stock | Approximately $12.5 billion | Raise capital through securities that are expected to convert into common shares |
| Future at-the-market share-sale program | Up to $60 billion | Sell shares gradually at prevailing market prices |
| Total planned fundraising | Up to $97.5 billion | Support AI infrastructure and broader corporate needs |
The total reflects the expanded plan reported by Reuters. The $60 billion program is not the same as money already raised: Meta has not finalized its timing, size or terms, and it may not sell the entire amount.
The preferred stock offering also has different terms from ordinary common stock. Its depositary shares represent fractional interests in mandatory convertible preferred shares, which are expected to convert into common stock under specified conditions and on the applicable schedule.
Meta’s plan therefore combines immediate public offerings with the possibility of future share sales rather than collecting the entire $97.5 billion at once.
Why Meta Needs So Much Capital for AI
Building AI infrastructure requires substantial spending on specialized processors, servers, networking equipment, data centers and electricity. Companies also need to maintain the facilities and computing systems required to train models and serve AI applications to millions of users.
Meta is expanding these resources as it develops AI assistants, advanced models, business agents and AI-powered features across Facebook, Instagram and WhatsApp.
The company expects capital expenditures of $135 billion to $145 billion in 2026, according to its investor announcement. These expenditures cover infrastructure and other capital investments needed to support its long-term technology strategy.
Meta is also pursuing AI products that could eventually generate revenue through advertising improvements, subscriptions, business services and enterprise offerings. Its argument is that spending today can improve its core business and create additional revenue streams over time.
However, the returns are uncertain. Infrastructure must be built and operated before all the potential commercial benefits become clear. Meta must therefore balance the opportunity to strengthen its AI capabilities against the cost of financing those investments.
Nvidia, AMD and Broadcom Show Interest in the Offering
The fundraising has attracted attention from companies that supply the chips Meta needs for AI infrastructure.
Nvidia, Advanced Micro Devices and Broadcom have indicated interest in purchasing up to $5 billion in Meta Class A shares collectively. Nvidia separately announced that it would invest $3 billion in the offering.
These investments are not all binding commitments to purchase a specified amount. Meta’s offering documents say the companies may ultimately buy more, less or none of the shares they have expressed interest in acquiring.
The participation of chip suppliers illustrates the growing financial connections within the AI industry. Semiconductor companies sell products to large technology firms while potentially investing in those same customers as they expand their infrastructure.
This can help companies finance major investments, but it also raises questions about how much of the AI industry’s growth depends on interconnected funding arrangements. Investors will want to understand whether demand for computing infrastructure ultimately translates into sustainable revenue and profits.
How the Fundraising Could Affect Meta Shareholders
Issuing additional shares can dilute existing shareholders’ ownership percentages if the number of shares outstanding increases without a corresponding increase in each investor’s holdings.
Meta’s common stock offering and proposed at-the-market program therefore have implications for existing shareholders. The ultimate effect depends on how many shares are issued, the price at which they are sold and the company’s financial performance after the capital is deployed.
The mandatory convertible preferred stock also requires separate consideration because its terms determine how and when it converts into common shares. The conversion terms, dividends a
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
