Meta launches $35B equity raise, first leg of a $95B AI funding plan, as chip suppliers signal interest

META launched about $35 billion of underwritten equity offerings on Monday, October 26, the first leg of a plan to raise roughly $95 billion to fund its AI build-out. The package is $22.5 billion of Class A common stock sold through forward sale agreements with Morgan Stanley and Goldman Sachs, plus $12.5 billion of mandatory convertible preferred stock that converts around August 15, 2029 and is set to list as METAM. A separate at-the-market program of about $60 billion in new non-voting Class C shares is slated for the first quarter of 2027, once that share class begins trading.

NVDA, AMD and AVGO, three of Meta's biggest chip suppliers, indicated interest in buying up to $5 billion of the common stock at the offering price, though the prospectus notes those indications are not binding. Meta receives no cash up front from the forward sales, which can settle as late as November 19, 2027. Meta said the money supports its family of apps, its Muse AI agent and its data center business, funded through a mix of operating cash flow, investment-grade debt, partnerships and equity.

The stock shrugged off an early drop. Shares fell more than 4% in early premarket trading but recovered, and by late morning traded near $643, roughly flat against Friday's $642.62 close. At Friday's close the $22.5 billion forward alone equals about 35 million new shares, lifting Class A shares outstanding from 2.214 billion to 2.249 billion, and the preferred terms bar Class A dividends and buybacks whenever preferred dividends go unpaid.

The raise follows a third quarter in which revenue rose 26% to $64.60 billion, ahead of the $63.37 billion analysts expected, while Meta lifted the bottom of its full-year capex forecast to a range of $135 billion to $145 billion, from $130 billion. It also leans on the new Class C structure, which takes effect January 19, 2027 and works like a 2-for-1 split. What to watch: final pricing and the preferred dividend rate, whether the chip suppliers actually buy, and how the dilution compares with Meta's past buybacks.