Meta seeks up to $95bn in stock sales to fund its AI data center buildout

Two offerings worth about $35bn

Meta said on 26 October 2026 that it would sell stock to raise as much as $95bn in total, starting with roughly $35bn of common and convertible preferred shares. Of that first step, $22.5bn is Class A common stock sold under forward sale agreements, which means Meta collects the cash later, no later than 19 November 2027. The remaining $12.5bn takes the form of mandatory convertible preferred stock that pays a dividend and converts into common stock around 15 August 2029, with the dividend rate set at pricing. Morgan Stanley and Goldman Sachs are handling the deal, and the banks can take up to $3.375bn more common stock plus 37.5 million additional preferred shares within 30 days.

Class A common stock (forward sale)22.5

Mandatory convertible preferred12.5

Class C shares (planned)60

Class A common stock (forward sale)

22.5 $ billion

Mandatory convertible preferred

12.5 $ billion

Class C shares (planned)

60 $ billion

Data from the article text

Chipmakers and a Class C programme

Nvidia, AMD and Broadcom, which Meta counts among its main chip suppliers, have signalled interest in buying up to $5bn of the Class A shares. Meta describes that interest as non-binding. A separate plan would sell about $60bn of nonvoting Class C shares on the open market through an at-the-market programme from early 2027. Meta has not yet signed an agreement for that programme. Taken together with the $35bn first step, the planned sales reach the $95bn headline figure.

Spending and cash flow behind the raise

Third-quarter sales rose 26%, ahead of analysts' estimates. The company expects to spend $135bn to $145bn on capital projects this year, mostly on data centers and chips, and the spending is expected to add up to $825bn over several years. Free cash flow turned negative in the third quarter for the first time in more than ten years. Meta has warned investors it will need to raise "hundreds of billions of dollars" over several years to fund its AI bet.

Mark Zuckerberg said the investments were paying off and offered an unexpectedly optimistic outlook. The company put its case in a statement on the AI push.

“AI is creating significant opportunities for Meta across its core business and new products and services.”

Low end135

High end145

Low end

135 $ billion

High end

145 $ billion

Data from the article text

Investor reaction

Meta shares rose 1.6% in premarket trading in one report and 2.3% in another, depending on the source. During the session on 26 October the shares fell as much as 4% before recovering to about 1% higher. The stock sits only slightly above its level at the start of 2026 after last week's heavy tech sell-off. The cost of insuring against a Meta default rose at times to a record high, as investors doubt the spending will pay off and fear large write-downs. Other technology groups such as SpaceX are also tapping capital markets on a large scale.

What comes next

The Class C programme is expected to start in early 2027, although no agreement has been signed yet. The forward sale agreements require delivery of the shares and the cash by 19 November 2027 at the latest. The mandatory convertible preferred shares are set to turn into common stock around 15 August 2029. The timeline below lays out the dates the company has given so far.