Meta plans to raise about $35 billion through shares and financial instruments to fund its artificial intelligence investments, while preparing a separate $60 billion share offering for 2027.
The current financing includes $22.5 billion in Class A common stock through forward sale agreements and about $12.5 billion in mandatorily redeemable preferred stock. Nvidia, AMD and Broadcom have expressed non-binding interest in buying up to $5 billion of the Class A shares under the same terms offered to other investors.
Morgan Stanley and Goldman Sachs are managing the transaction. Underwriters are expected to have a 30-day option to purchase additional securities, including up to $3.375 billion in common stock.
Meta’s separate offering would involve non-voting Class C shares and could begin in the first quarter of 2027, although the company has not reached a final agreement.
The funding plans come as Meta expects capital expenditure of $135 billion to $145 billion in 2026 to expand data centers and computing capacity. The company generated $97 billion in operating cash flow during the first nine months of 2026 and held about $82 billion in cash, equivalents and marketable securities at the end of September. However, free cash flow turned negative in the third quarter as spending increased.
Issuing shares avoids adding debt and interest costs but can dilute existing shareholders. The Class C structure would allow Meta to raise capital without voting rights, helping preserve the existing control structure.
Source: EntArabi
