Meta is launching a $35 billion stock offering, with up to $60 billion more planned from 2027, to fund AI infrastructure and its superintelligence push.

Meta Platforms is planning to raise up to $95 billion in equity to pay for its artificial intelligence build-out, one of the largest stock-funded financing plans a technology company has attempted. Only about $35 billion of it is launching now. The remaining $60 billion is a proposal that Meta says may not go ahead.

The plan is aimed at funding AI infrastructure and what the company calls "personal superintelligence." Meta has also said it will keep drawing on operating cash flow, investment-grade debt and strategic partnerships to fund its spending.

Morgan Stanley and Goldman Sachs are the lead underwriters. Nvidia, AMD and Broadcom have indicated interest in buying up to $5 billion of the Class A shares combined, though those indications are not binding.

Cash from the Class A shares will not arrive immediately. Meta does not expect initial proceeds, and it can settle the forward agreements on dates it chooses on or before Nov. 19, 2027. The preferred shares automatically convert into common stock on or about Aug. 15, 2029, and the dividend rate and conversion terms will be set at pricing.

Meta's own announcement does not use the $95 billion figure. It is the sum of the $35 billion offerings and the $60 billion program. The company said the proposed program is not finalised and that there is no assurance it will be established on the announced terms, or at all.

Meta expects capital spending of $135 billion to $145 billion this year, up at the low end from a prior range starting at $130 billion. It expects its infrastructure capacity to nearly double in 2026, and it is building four superclusters, each above one gigawatt.

The third-quarter figures show the strain. Revenue rose 26% to $64.6 billion, beating analyst estimates of about $63.3 billion. Capital spending was $34.91 billion in the quarter, and free cash flow was negative $2.12 billion. Operating margin fell to 20% from 40% a year earlier, helped lower by a $9.89 billion legal charge tied to an August agreement with 52 state attorneys general over teen mental health and social media litigation. Net income was $9.86 billion.

Meta is not short of cash. It held $82.45 billion in cash and marketable securities at the end of September and generated $97 billion in operating cash flow over the first nine months. Its long-term debt stood at $80.92 billion, and it carries credit ratings of Aa3 and AA-.

CEO Mark Zuckerberg said Meta hit "major milestones this quarter toward delivering personal superintelligence for everyone." The company also launched its Muse personal AI agent, which has more than 10 million accounts in the U.S. and Canada.

The financing follows Meta's creation of a new class of non-voting Class C common stock. Shareholders will receive one Class C share for each Class A and Class B share they hold, a move Meta expects the Class A price to reflect as a two-for-one split. The company said the new class is meant for raising capital, employee compensation and potential acquisitions. It plans to list the stock on Nasdaq, with trading expected in January.

Zacks strategist Andrew Rocco said the plan lets Meta fund AI investments without diluting Zuckerberg's control. The Class A offering, however, does carry votes.

Meta has not disclosed pricing or share counts for the offerings. The Irish Times reported that Meta shares fell 7% on Thursday after the earnings report and capex outlook. Quartz reported the shares trading around $650 in premarket trading Monday, up about 1%.

The key questions are how the offerings price, how much of the $60 billion program Meta actually executes, and whether investors keep backing spending of this scale while free cash flow is negative. This article is not investment advice.

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