Meta Plans $95 Billion in Stock Offerings for AI Expansion
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Meta has begun a $35 billion stock offering to support its artificial intelligence (AI) expansion, with plans to raise an additional $60 billion through equity programs next year.
The social media giant is conducting concurrent underwritten public offerings of $22.5 billion in Class A common stock and $12.5 billion in depositary shares. The depositary shares offering includes 250 million shares, each representing a one-twentieth interest in a share of preferred stock. Additionally, underwriters have a 30-day option to purchase up to 37.5 million additional depositary shares to cover over-allotments.
Underwriters may also purchase up to $3.375 billion of additional Class A shares under a 30-day option. If exercised, Meta expects to enter additional forward sale agreements covering those shares.
Nvidia, Advanced Micro Devices, and Broadcom have expressed interest in buying up to $5 billion of Class A shares in Meta’s fundraising plan, described as cornerstone investors. However, these indications are not binding, and the companies can purchase more, fewer, or no shares at all. The underwriters will receive the same discount on shares purchased by the cornerstone investors as on other Class A shares sold to the public.
Meta does not expect to receive proceeds initially from the sale of Class A shares by forward purchasers and will receive cash when the forward sale agreements settle. Morgan Stanley and Goldman Sachs are acting as lead joint bookrunning managers.
Meta anticipates capital expenditures of $135 billion to $145 billion in 2026 as it expands infrastructure and compute capacity. The company believes AI is creating opportunities across its core business and new products and services.
Meta's AI investments are already generating returns through increased engagement, improved advertising performance, and increased monetization. The company is pursuing opportunities in personal superintelligence, consumer and business agents, enterprise products, and AI glasses.
