Meta is turning to the stock market to pay for its artificial intelligence ambitions. The company announced on Monday, October 26, 2026, that it plans to raise up to $95 billion through stock offerings, with about $35 billion launching now and up to $60 billion more to follow in early 2027. Three of its biggest chip suppliers, Nvidia, AMD and Broadcom, have said they may buy up to $5 billion of the new shares between them.

Meta said the money will support its investment in AI infrastructure and personal superintelligence. The company added that its AI investments “are already generating tangible returns” by increasing engagement with its products and improving advertising and monetization.

What Meta Is Selling

The first part of the plan is about $35 billion in concurrent underwritten public offerings, led by Morgan Stanley and Goldman Sachs. It has two pieces: about $22.5 billion of Class A common stock, sold through forward sale agreements that settle on one or more dates on or before November 19, 2027, and about $12.5 billion of mandatory convertible preferred stock, sold as 250 million depositary shares that Meta plans to list on Nasdaq under the ticker METAM. Those shares will automatically convert into common stock around August 15, 2029, with the dividend rate and conversion terms to be set at pricing.

The bigger piece comes later. Meta plans an at-the-market program of approximately $60 billion, selling its newly created non-voting Class C shares gradually on the open market. That program is not expected to start until the first quarter of 2027, and Meta has not signed an agreement for it yet, so there is no assurance it will happen. The $95 billion figure is therefore potential capital raised, not money already secured.

body meta raise at a glance

Graphic: GPTOnline

Chip Suppliers May Buy In

Nvidia, AMD and Broadcom have expressed interest in buying up to $5 billion of Meta’s Class A shares in aggregate through the offering, according to Meta’s statement on Monday. Those indications are not binding. All three companies are major Meta suppliers: Nvidia has agreed to supply millions of AI chips, AMD has a deal covering up to six gigawatts of GPUs, and Broadcom is helping develop Meta’s custom processors.

The relationship is already close. In February, AMD granted Meta warrants to buy up to 160 million AMD shares for one cent each, subject to chip purchases and other performance milestones, so the two companies could end up owning stakes in each other if AMD proceeds with its proposed investment.

Why the Money Is Needed

Meta expects capital expenditures of about $135 billion to $145 billion this year, most of it going to data centers, computing equipment and related technology for AI. William Blair analyst Ralph Schackart said the financing plan reflects “the substantial capital needed to succeed in the AI race” and to afford the infrastructure build-out, adding that the offerings “significantly expand Meta’s funding flexibility” alongside its operating cash flow and debt.

The scale of the raise underlines how expensive the AI race has become, even for the richest tech companies. Meta is not alone in tapping equity markets: Google parent Alphabet completed an $85 billion offering earlier this year, and Meta’s announcement came on the same day Anthropic publicly filed its S-1 for a Nasdaq IPO under the ticker ANT.

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Graphic: GPTOnline

Market Reaction

Meta shares pared initial losses and climbed 1.6% to about $654 each in premarket trading on Monday in New York, after falling 2.7% this year through Friday’s close. Semafor noted that the financing marks the first time Meta has issued new stock since 2013.

Attention now turns to pricing of the first offerings and to whether the chipmakers follow through on their indications. If they do, Meta’s suppliers will become its shareholders as well, tying the fortunes of the AI infrastructure build-out even more tightly together.

Sources