Meta launches about $35 billion stock offering to fund AI expansion and plans a subsequent ATM plan of up to $60 billion
Meta Platforms launched an approximately $35 billion public offering of common stock and convertible preferred stock on October 26, 2026, to fund its AI expansion. The company also said it plans to launch an at-the-market share sale program of up to $60 billion after trading begins in its new non-voting Class C shares, expected in the first quarter of 2027. Together, the two could total about $95 billion.
The company said the fundraising is intended to support spending on data centers, computing power and AI products to compete with rivals such as OpenAI and Anthropic. As of September 30, 2026, Meta held $82.45 billion in cash, cash equivalents and marketable securities, slightly more than its $80.92 billion in long-term debt. The company has committed to future spending of about $825 billion, driven mainly by investment in data centers, AI-related infrastructure and cloud computing capacity.
Meta had previously announced the creation of non-voting Class C shares to be used for fundraising, employee compensation and potential acquisitions, without diluting founder Mark Zuckerberg's voting control. Capital expenditure guidance for 2026 is $135 billion to $145 billion.
Original sources:
Title: Meta launches $35 billion stock offering to fund AI expansion Publisher: Reuters Date: 2026-10-26 URL: https://www.reuters.com/legal/transactional/meta-launches-35-billion-stock-offering-fund-ai-expansion-2026-10-26/ Nature of source: media report Verification status: full-text summary and key passages read in this session (2026-10-26) Supported content: approximately $35 billion public offering of common stock and convertible preferred stock; subsequent ATM plan of up to $60 billion; for AI expansion; cash and debt figures; about $825 billion in future committed spending.
Title: Explainer: Why is Meta creating a new class of non-voting shares amid its AI growth? Publisher: Reuters Date: 2026-10-23 URL: https://www.reuters.com/business/why-is-meta-creating-new-class-non-voting-shares-amid-its-ai-growth-2026-10-23/ Nature of source: media report Verification status: relevant passages read in this session (2026-10-26) Supported content: establishment of Class C non-voting shares; used for fundraising without diluting Zuckerberg's voting power; 2026 capital expenditure guidance of $135 billion to $145 billion.
ABAB AI Insight
By establishing non-voting Class C shares and launching a large equity offering, Meta is opening a new capital channel for ongoing AI infrastructure investment. The company had previously raised funds through bond issuance, including about $27 billion in Hyperion data-center-related bonds in 2025. Combined with the Class C mechanism, this equity financing allows external capital to be brought into data center and computing capacity buildout without diluting the founder's voting control.
On the capital path, AI expansion is pushing many technology companies to face cash outflow and rising debt pressure. As of September 30, 2026, Meta's cash and marketable securities were slightly higher than its long-term debt, but free cash flow turned negative in quarters with high capital spending. The scale of $825 billion in future committed spending far exceeds current cash reserves, pushing the company from relying mainly on internal cash and debt toward a mixed financing path of equity and debt. Chip suppliers Nvidia, AMD and Broadcom already have large purchase or cooperation agreements with Meta, but public reports did not identify them as cornerstone investors in this equity offering.
Compared with other hyperscale companies, Meta is retaining control while expanding the amount of equity it can issue through a non-voting share structure. Alphabet and others have also used similar multi-class share structures. The market's ability to absorb this kind of large-scale AI-related financing has already caused share-price volatility after Meta announced the relevant plans. The actual execution size and timing of the subsequent ATM plan will depend on market conditions and the company's capital expenditure progress.
For shareholders, the issuance of non-voting shares increases potential dilution and capital costs while preserving the existing voting structure. Whether the company can complete large-scale fundraising on acceptable terms will affect the pace of its AI infrastructure deployment and its competitive position relative to other AI companies.
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The non-voting share structure allows the company to expand equity financing while preserving the founder's control.
The scale of AI infrastructure committed spending exceeds existing cash and operating cash flow, pushing the company from internal financing to an external mixed path of equity and debt.
The announcement of a large-scale equity offering plan itself can trigger market repricing of capital costs and dilution.