Meta launches $35 billion stock sale to fund AI, plans up to $60bn more
Facebook owner Meta is selling about $35 billion of new shares to pay for its AI data centre build-out, with Nvidia, AMD and Broadcom signalling interest in buying up to $5 billion.
At a glance
- Meta launched public offerings worth about $35 billion on Monday, October 26, 2026: about $22.5 billion of Class A common stock and about $12.5 billion of mandatory convertible preferred stock.
- The money will fund Meta's heavy spending on AI data centres, computing capacity and AI products.
- Nvidia, AMD and Broadcom have given non-binding indications that they may buy up to $5 billion of the common stock.
- Meta also plans a separate at-the-market share sale of up to $60 billion once its new non-voting Class C shares start trading, expected in early 2027.
- Morgan Stanley and Goldman Sachs are leading the offerings.
Meta Platforms, the owner of Facebook, Instagram and WhatsApp, launched a stock sale worth about $35 billion on Monday, October 26, 2026, to pay for its fast-growing spending on artificial intelligence. Filings with the US Securities and Exchange Commission show the deal is split between ordinary shares and convertible preferred stock, and that Meta plans a further share-sale programme of up to $60 billion next year.
The offering in detail
| Part of the deal | Size / detail |
|---|---|
| Class A common stock | About $22.5 billion |
| Mandatory convertible preferred stock (depositary shares) | About $12.5 billion |
| Total launched October 26 | About $35 billion |
| Lead banks | Morgan Stanley and Goldman Sachs |
| Interest from chipmakers | Nvidia, AMD and Broadcom: up to $5 billion of Class A shares (non-binding) |
| Planned later programme | At-the-market sales of up to $60 billion of non-voting Class C shares |
| Class C trading start | Expected first quarter of 2027 |
Mandatory convertible preferred shares pay investors a fixed dividend and automatically turn into common stock at a set date, which lets a company raise equity now while spreading out the dilution.
The interest from Nvidia, AMD and Broadcom is notable: all three sell chips and networking gear that Meta needs for its data centres, so part of the money Meta pays them could come back as investment. Meta says their indications are not binding.
Background: the AI spending race
Meta has committed to very large future spending, mainly on data centres, AI infrastructure and cloud computing, as it races OpenAI, Anthropic and Google to build more powerful AI models and products. At the end of September it had $82.45 billion in cash, cash equivalents and marketable securities, only slightly more than its $80.92 billion of long-term debt.
Last week Meta reported third-quarter revenue of $64.6 billion, up 26%, but a $9.89 billion legal charge cut its operating income, and its shares fell sharply as investors worried about the cost of the AI build-out. Meta recently created the new non-voting share class so it can raise money from the market without diluting chief executive Mark Zuckerberg's voting control.
Meta is not alone. Alphabet recently raised $85 billion through equity offerings for its own AI data centres, and on the same day Meta launched its sale, AI developer Anthropic made its IPO filing public.
Market reaction
Meta's shares moved lower in early trading after the announcement before recovering some ground, as investors weighed the dilution against the company's AI plans. Raising equity rather than more debt keeps borrowing in check but means existing shareholders own a smaller slice of the company.
Why it matters
The scale of the sale shows how expensive the AI race has become, even for one of the world's most profitable companies. For ordinary investors, including millions who own Meta through index and pension funds, it signals that big tech's AI ambitions will increasingly be financed by new shares and debt rather than only by profits. For chipmakers such as Nvidia, it confirms strong demand for AI hardware into 2027.
What happens next
Pricing of the $35 billion offering is expected within days. The separate programme of up to $60 billion would begin only after the new Class C shares start trading, expected in the first quarter of 2027. Investors will watch whether the extra money translates into AI revenue growth in Meta's coming quarterly results.
Questions people are asking
Why is Meta selling $35 billion of stock?
Meta is raising the money to pay for its fast-growing spending on artificial intelligence, including data centres, computing chips and AI products, as it competes with OpenAI, Anthropic, Google and others.
What are Meta's new Class C shares?
They are a new class of non-voting shares Meta has created. Because they carry no votes, Meta can sell them to raise money without weakening Mark Zuckerberg's voting control; trading is expected to start in the first quarter of 2027.
Are Nvidia and AMD investing in Meta?
Nvidia, AMD and Broadcom have indicated interest in buying up to $5 billion of Meta's new common stock, but Meta says these indications are not binding.
