Meta launches $35B stock offering, plans up to $60B more to fund AI

Meta launched about $35 billion of underwritten public offerings on Oct 26, and said it plans a much larger at-the-market stock program later. Nothing has priced yet.

The two offerings. About $22.5 billion is Class A common stock sold through forward sale agreements. The other roughly $12.5 billion is 250 million depositary shares, each representing a stake in Series A mandatory convertible preferred stock with a $50 liquidation preference. The preferred converts on or about Aug. 15, 2029, and Meta proposes to list the depositary shares on Nasdaq under the ticker METAM. Morgan Stanley and Goldman Sachs are lead bookrunners and the forward purchasers.

Cash comes later on the stock. Under the forward sale agreements, Meta does not expect to receive proceeds initially. It gets cash when the forwards settle, on dates it picks on or before Nov. 19, 2027. Underwriters hold 30-day options for up to 37.5 million more depositary shares and $3.375 billion more Class A stock.

The bigger plan is not locked in. Meta plans an at-the-market program of up to about $60 billion in its new non-voting Class C shares. It has signed no agreement, timing, size and terms are not determined, and it does not expect to start before the first quarter of 2027. Meta says there is no assurance it will happen. The $95 billion total circulating in coverage is press math ($35 billion plus $60 billion), not a figure in Meta's release; the Wall Street Journal reported Meta plans up to $95 billion. Reuters called it Meta's largest-ever equity raise, and Bloomberg Law described it as one of the largest equity offerings in history.

Chipmakers signal interest. Nvidia, AMD and Broadcom indicated non-binding interest in buying up to an aggregate $5.0 billion of the Class A shares, not $5 billion each. Meta's release subhead says the raise supports continued investment in AI infrastructure and personal superintelligence, while the formal use of proceeds is general corporate purposes.

A pricing announcement is expected later, and we will update this story. Context: Meta's plan to create a non-voting share class. Source: Meta investor relations release.