Meta wants to raise up to $95 billion in new equity to fund AI infrastructure and superintelligence.
Meta wants to raise up to $95 billion in new equity to fund AI infrastructure and superintelligence. Reuters calls it Meta's largest-ever equity fundraising, and one of the biggest ever by any company building AI.
Last quarter Meta's free cash flow went to -$2.1 billion after $34.9 billion in capex, with $82.4 billion in cash and marketable securities still on hand. Meta also approved a new non-voting Class C share class, set to take effect January 19, 2027. Now we know what that class is for.
About $35 billion in underwritten offerings is launched: $22.5 billion of Class A common stock via forward sale agreements, with cash arriving on settlement, plus roughly $12.5 billion of mandatory convertible preferred depositary shares. The other $60 billion is a planned at-the-market program in Class C stock, not expected before Q1 2027. Meta says it has no agreement for it yet, and timing, size and terms aren't final.
The detail I keep coming back to is that Nvidia, AMD and Broadcom expressed nonbinding interest in buying up to a combined $5 billion of the Class A shares. They may buy less or none, but if they do, the suppliers would be putting money into a customer that is spending heavily on their chips.
Meta says AI "is creating significant opportunities" across its core business and new products. $META closed Monday at $630.56, down 1.88%, after falling as much as roughly 4% early, briefly turning positive, then fading into the close.
What strikes me most is the non-voting structure. If the Class C program happens, Meta gets up to $60 billion of new equity without diluting anyone's voting control, though holders' economic stake still gets diluted. The open question is how long public investors will keep writing checks for a superintelligence bet they get no say in.
$META
Sources:
Reuters: https://www.reuters.com/legal/transactional/meta-launches-35-billion-stock-offering-fund-ai-expansion-2026-10-26/
CNBC: https://www.cnbc.com/2026/10/26/meta-stock-offering-ai.html
UPI: https://www.upi.com/Top_News/US/2026/10/26/meta-announces-95-billion-plan-ai-investment/1511793026691/
Not financial advice. For informational and educational purposes only.
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