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# Meta plans to raise up to $95 billion by selling stock to fund its AI buildout
- URL: https://www.skimwire.com/meta-95-billion-stock-offering-ai-spending/
- Published: 2026-10-26T12:46:44.000Z
- Updated: 2026-10-26T12:46:44.000Z
- Description: Meta launched about $35B in stock offerings and plans a $60B share-sale program in 2027. Nvidia, AMD and Broadcom may buy up to $5B.
- Author: Jeremy Moon
- Tags: Business, AI

## The skim

- Meta said Monday it plans to raise up to $95 billion in new equity to pay for AI data centers and computing power: about $35 billion now, and up to $60 billion more starting no earlier than early 2027.
- Nvidia, AMD and Broadcom, which all sell Meta chips, have said they might buy up to $5 billion of the new shares. Those indications aren't binding.
- It's one of the clearest signs yet that even the richest tech companies can't fund the AI race from cash flow alone. Meta expects to spend $135 billion to $145 billion on capital projects this year.

## What Meta announced

Meta [launched two stock offerings](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Launch-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx?ref=skimwire.com) early Monday as part of what it calls a financing plan. The first piece is about $22.5 billion of Class A common stock, sold through forward sale agreements with Morgan Stanley and Goldman Sachs. Meta won't get that cash right away. It gets paid when it settles the agreements, on one or more dates on or before Nov. 19, 2027.

The second piece is about $12.5 billion of mandatory convertible preferred stock, sold as 250 million depositary shares that Meta plans to list on Nasdaq as "METAM." They automatically turn into common stock around Aug. 15, 2029\. The dividend rate and conversion terms will be set at pricing.

The biggest piece comes later: an "approximately $60 billion" at-the-market program, meaning Meta could sell new shares gradually on the open market. It would sell the new non-voting Class C shares that [Meta announced last week](https://www.skimwire.com/meta-non-voting-class-c-stock-ai-spending-q3-2026/), and it isn't expected to start until the first quarter of 2027\. Meta says it hasn't signed any agreement for that program yet, and there's "no assurance" it will happen.

## Why it matters

Meta still makes a lot of money. It generated $97 billion of operating cash in the first three quarters of 2026 and had about $82 billion in cash and securities at the end of September. But its building spree costs even more. Last week's results showed negative free cash flow, and Meta raised the low end of its 2026 spending forecast to $135 billion. It says it is building four "superclusters" of more than one gigawatt each and expects to nearly double its total infrastructure capacity this year.

Selling stock dilutes existing shareholders, which is why big tech companies have mostly borrowed for AI instead. Meta says it will keep using debt, too. It calls the new stock "a complementary source of capital" alongside operating cash flow, investment-grade debt and partnerships. Reuters notes Meta's long-term debt was $80.92 billion as of Sept. 30, almost the same as its cash pile, and that it has committed to about $825 billion in future spending, mostly on data centers and computing.

The chipmaker angle is unusual. Nvidia, AMD and Broadcom would be buying stock in a customer that spends heavily on their hardware.

## What's next

Meta still has to price the two offerings. After that, watch the Class C shares, which take effect Jan. 19, 2027 and are the gateway to the $60 billion program. Meta says the spending supports Muse, its AI service, which it says reached more than 10 million users in the US and Canada in its first weeks, plus enterprise products like its API and Muse Code. Investors will want evidence that those products earn back the money.

*Sources:* [*Meta press release*](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Announces-Launch-of-Offering-of-Depositary-Shares-Representing-Series-A-Mandatory-Convertible-Preferred-Stock-and-Offering-of-Class-A-Common-Stock-in-Connection-with-Forward-Sale-Agreements/default.aspx?ref=skimwire.com)*,* [*CNBC*](https://www.cnbc.com/2026/10/26/meta-stock-offering-ai.html?ref=skimwire.com)*,* [*Reuters via CNA*](https://www.channelnewsasia.com/business/meta-raise-up-95-billion-in-equity-fund-costly-ai-expansion-6492931?ref=skimwire.com) *and* [*Quartz*](https://qz.com/meta-raising-95-billion-equity-ai-spending-102626?ref=skimwire.com)*.*