Meta plans up to $95 billion in stock sales to fund its AI spending

Short answer: Meta wants to raise up to $95 billion by selling stock to pay for AI. The company said on Monday it plans to raise up to $95 billion in equity for data centers, cloud computing power and other infrastructure, starting with public offerings of about $35 billion in common and convertible preferred stock. Bloomberg reported the same figure.

The bigger point: one of the world's richest companies is now asking investors, not just bond markets, to carry its AI bill.

The deal at a glance

The split comes from Meta's own announcement and Reuters-based coverage. The $60 billion ATM program will launch after the new non-voting Class C shares begin trading, which is expected in the first quarter of 2027. Meta has not yet entered into an agreement for that program.

Why Meta is doing this now

The cash is tightening. Meta held $82.45 billion in cash and marketable securities on Sept. 30, only slightly above its $80.92 billion of long-term debt. It also reported a $2.12 billion cash burn in the third quarter, its first negative free cash flow in over 10 years.

Spending is heading the other way. Last week Meta raised the low end of its 2026 capital expenditure forecast, which is now $135 billion to $145 billion. It has also committed to about $825 billion in spending, mainly on data centres, AI infrastructure and cloud computing power.

CNBC reported that Meta said the money will support "emerging AI opportunities" including its family of apps, its AI agent Muse and its data center business. The formal use of proceeds is broader. Meta intends to use net proceeds from the forward sales for general corporate purposes.

Who pays

Two groups pay. New investors put up the cash. Existing shareholders take the dilution.

• New buyers. They get Class A shares or the preferred. Each preferred share has a $1,000 liquidation preference, so each depositary share represents $50. The preferred converts automatically into Class A or Class C common stock around Aug. 15, 2029, and Meta plans to seek a Nasdaq listing under the ticker METAM.
• Current holders. More shares means each existing share owns a smaller slice of Meta. Finimize notes that extra supply can weigh on the stock or per-share metrics unless the new spending produces profits fast enough to offset dilution.

The ATM design matters too. Unlike a one-off deal that clears in a day, an ATM drip-feeds stock into the market and can act like a steady seller. That is analysis from Finimize, not something Meta has said.

Who gains

• Meta. It gets funding without piling on more debt. The non-voting Class C shares let Meta raise equity while preserving the voting control of CEO Mark Zuckerberg and other existing voting shareholders.
• The banks. The offerings are underwritten by Morgan Stanley and Goldman Sachs.
• The chip suppliers. Nvidia, AMD and Broadcom have shown non-binding interest in buying up to a combined $5 billion. That interest is not a commitment.

One detail to note on timing. Meta does not expect to receive proceeds up front from the forward purchasers' sale of Class A shares. The cash arrives when the forward agreements settle.

How the market reacted

Meta stock was up 1.6% in premarket trading after the announcement. That follows a rough few days. Third-quarter revenue rose 26% to $64.60 billion, beating the $63.37 billion analysts expected, but investors focused on the negative free cash flow and higher capex forecast. That sent shares lower on the day. Early moves can change, so treat the premarket figure as a snapshot.

Why it matters for the AI market

Meta is not short of money in any ordinary sense. It is competing with rivals such as OpenAI and Anthropic and the price of staying in the race keeps rising. Meta has used other funding routes before. An earlier FT report, relayed by Reuters, said Meta had sought $29 billion from private capital firms for AI data centers. A stock raise of this size adds a new route.

For you as a reader or investor, the takeaway is plain. AI infrastructure now costs more than even the largest tech firms can comfortably fund from operating cash. Expect other big spenders to face the same question: debt, private capital or new shares.

What to watch next

• Final pricing and demand for the common and preferred offerings. The final sizes are not yet confirmed.
• The 30-day option. Meta expects to give underwriters an option to buy up to $3.375 billion more Class A shares. If used, the raise grows beyond $35 billion.
• Class C trading and the ATM start in the first quarter of 2027.
• Meta's next capex update. The $60 billion ATM is a ceiling, not a promise to sell that much.

Bottom line: the $95 billion is a ceiling, and only $35 billion is actually launched. The rest depends on Meta's share price and its own timing.