Meta Platforms has increased its largest-ever equity fundraising to $97.5 billion, stepping up its bet on artificial intelligence infrastructure as the cost of chips, data centres and computing power keeps rising.
The Facebook parent said on Tuesday, October 27, that it had increased the Class A common stock offering announced on Monday from $22.5 billion to $25 billion, priced at $625 per share. It also priced 250 million depositary shares at $50 each, representing mandatory convertible preferred stock carrying a 6.50% annual dividend.
What the $97.5 billion figure actually covers
The headline total needs careful reading. It is not $97.5 billion of cash already raised. It combines about $37.5 billion in public offerings now — $25 billion of common stock plus $12.5 billion of depositary shares — with a separate at-the-market share sale programme worth up to $60 billion.
That larger programme would sell shares gradually at prevailing market prices, but only after Meta’s new non-voting Class C shares begin trading, which is expected in the first quarter of 2027. Meta has said it has not yet finalised the timing and terms of that programme, so there is no guarantee it will proceed exactly as planned.
For the offerings announced this week, Meta expects them to close on October 29. The common stock is being offered through forward sale agreements, with settlement expected on or before November 19, 2027. Meta expects net proceeds of approximately $24.9 billion from the common stock offering upon settlement, and approximately $12.5 billion from the depositary shares offering. Underwriters have 30-day options to buy additional shares worth up to $3.75 billion of common stock and $1.875 billion of depositary shares.
Meta said it intends to use the proceeds for general corporate purposes, within a wider plan to finance AI infrastructure and what it calls personal superintelligence.
Why Meta needs the money now
Meta has told investors it expects capital expenditure of $135 billion to $145 billion in 2026, largely to expand the computing capacity needed for AI development. Its investments support AI assistants, business tools, AI-powered glasses and other products, and the company says its AI investments are already improving user engagement and advertising performance.
The fundraising comes as Meta competes with OpenAI and Anthropic for the chips, data centre capacity and engineering talent needed to build and run advanced AI systems. That race has made AI infrastructure one of the most capital-intensive pursuits in the technology industry, and Meta is funding it through a mix of operating cash flow, debt, strategic partnerships and equity.
Nvidia’s $3 billion investment
In a separate statement on Tuesday, Nvidia said it would invest $3 billion in Meta’s equity offering and deepen its partnership on Meta’s Muse AI assistant and related models. Meta’s Muse models and agents run on Nvidia infrastructure, and the two companies said they would work more closely to improve performance and reduce costs.
They are also exploring further work on Nvidia’s OpenShell framework, including using it to roll out software safely, and a tool called Sentry to monitor how AI agents behave. Muse is central to chief executive Mark Zuckerberg’s plan to deliver personal superintelligence to the billions of people who use Meta’s services.
Nvidia, Advanced Micro Devices and Broadcom had earlier indicated interest in buying up to $5 billion of Meta shares in aggregate. Those indications were not binding commitments, and only Nvidia’s $3 billion investment has been confirmed as a separate statement so far.
The concern analysts are raising
The involvement of chip suppliers has drawn attention because those companies also stand to benefit from Meta’s large purchases of processors and other computing equipment. Analysts have described the pattern as a circular flow of capital in the AI industry, with suppliers helping to finance the expansion of one of their biggest customers.
William Blair analysts said in a note that they expect investors to continue questioning the financing and the potential for future capital raises. They added that the financing reinforces both Meta’s confidence in the long-term returns from AI investment and the increasingly capital-intensive nature of pursuing that opportunity.
Meta shares fell about 1.4% in morning trading on Tuesday, Reuters reported, a muted reaction that underlines how closely investors are watching whether the spending will translate into returns.
What happens next
The immediate test is the closing of this week’s offerings on October 29, followed by the start of trading in the new Class C shares, expected in early 2027. Only then will the terms of the up-to-$60 billion at-the-market programme become clear.
For now, the confirmed facts are the priced terms: $25 billion of stock at $625 a share, $12.5 billion of preferred depositary shares at $50 each, and a $3 billion Nvidia investment. The rest of the $97.5 billion remains a plan, not yet money in the bank.
Frequently asked questions
How much has Meta actually raised so far?
Meta has priced about $37.5 billion in public offerings: $25 billion of Class A common stock and $12.5 billion of depositary shares representing mandatory convertible preferred stock. A further programme worth up to $60 billion has been announced but not finalised.
Why is Nvidia investing $3 billion in Meta?
Nvidia said the investment deepens its partnership on Meta’s Muse AI assistant and models, which run on Nvidia infrastructure. The companies plan to work together on performance, costs and the safe rollout of AI agents.
What will Meta spend the money on?
Meta says the proceeds support general corporate purposes within its AI infrastructure expansion, including chips, data centres and AI products, alongside operating cash flow, debt and partnerships.
Sources:
- Meta Platforms pricing announcement, PR Newswire, October 26, 2026: https://www.prnewswire.com/news-releases/meta-announces-pricing-of-offering-of-depositary-shares-representing-series-a-mandatory-convertible-preferred-stock-and-offering-of-class-a-common-stock-in-connection-with-forward-sale-agreements-302920247.html
- Dow Jones Newswires, “Nvidia to Invest $3 Billion in Meta’s Equity Offering”, October 27, 2026, via Morningstar: https://www.morningstar.com/news/dow-jones/20261027752/nvidia-to-invest-3-billion-in-meta-s-equity-offering-as-they-expand-ai-partnership
