Meta Plans $35 Billion Stock Offering to Power AI Buildout -- 2nd Update

By Connor Hart and Chelsey Dulaney

Meta Platforms unveiled a plan to raise up to $95 billion in waves of stock offerings, as the company embarks on a cash-raising spree to fund its massive investments in artificial-intelligence infrastructure.

The Facebook parent said Monday it will launch roughly $35 billion in public offerings, comprising $22.5 billion of Class A common stock and $12.5 billion of depositary shares representing mandatory convertible preferred stock.

Meta also plans to establish an at-the-market stock offering program of up to $60 billion, potentially beginning in the first quarter of 2027. That is the program by which the company will create a new class of nonvoting stock, a move it previously announced. The company expects to sell shares of its new "Class C" stock over time, though Meta said Monday it hasn't finalized the arrangement.

Investors have at times been hesitant to support the spending spree Chief Executive Mark Zuckerberg has undertaken to transform Meta into an AI company, repeatedly pushing him to see near-term returns. Initial excitement over the company's record third-quarter revenue quickly gave way to mounting anxiety over how the company and its peers will secure enough capital to fund the AI race.

Meta's stock fell by about 1% as the market opened Monday.

The move is the latest in America's AI build-out, which is on track to become the biggest economic bet in U.S. history. Total investment in data centers and related AI infrastructure is projected to total $10.3 trillion from 2025 to 2032, The Wall Street Journal previously reported.

Meta plans to fund its AI investments through a mix of operating cash flow, investment-grade debt, strategic partnerships and equity capital, it said. Nvidia, Advanced Micro Devices and Broadcom have indicated interest in purchasing up to $5 billion worth of common stock in the offering, Meta said.

Nvidia in particular has emerged as a key funder of the AI build-out, making large investments in customers such as OpenAI and CoreWeave, as well as rival chip maker Intel. AMD and OpenAI also struck a deal last year, under which OpenAI agreed to buy AMD chips in exchange for stock warrants.

The increasingly intertwined finances of companies involved in the AI boom has raised concern among investors, who fear a retrenchment in AI spending could hit companies like Nvidia twice -- with less revenue coming in and declining values for their equity investments in customers.

Meta's financing plan ramps up spending to support its AI ambitions, with capital expenditures expected to come in between $135 billion and $145 billion this year.

Meta said AI is creating significant opportunities across its core business, in addition to supporting the launch of new products and services, such as AI-enabled smartglasses and its Muse AI agent. The company added its investments are generating returns through increased engagement, improved advertising performance and increased monetization.

Meta sees Muse, its new personal-assistant AI agent, as the centerpiece of its whole operation and has restructured the company around the division that houses it, called Meta Superintelligence Labs. The goal, Zuckerberg said, is to create "a large-scale Muse network" where billions of Muse agents work together to get more done for people and businesses.

Write to Connor Hart at Connor.Hart@wsj.com

(END) Dow Jones Newswires

October 26, 2026 09:49 ET (13:49 GMT)