Meta Plans $35 Billion Equity Raise to Fund Its AI Buildout
As seen on the 24/7 Wall St. homepage on October 26, 2026.
Meta is funding its AI buildout with equity, and $35 billion split between forward stock sales and mandatory convertibles puts the dilution on existing holders.
$META announced plans to raise approximately $35 billion through two offerings: > $22.5B in Class A common stock through forward sale agreements. > $12.5B in depositary shares representing mandatory convertible preferred stock. Interestingly, NVIDIA, AMD and Broadcom have https://t.co/zBQpn3ogXM
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Meta is tapping equity markets in a significant way, announcing plans to raise approximately $35 billion through two offerings on October 26, 2026, split between Class A common stock sold via forward sale agreements and depositary shares representing mandatory convertible preferred stock.
Forward sale agreements let a company lock in today's stock price while delaying the actual share issuance, giving Meta flexibility on timing. Mandatory convertible preferred stock, by contrast, is designed to automatically convert into common shares at a set future date, meaning dilution for existing holders is essentially guaranteed on both legs of this deal.
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Together the two instruments push the full cost of this capital raise onto current shareholders through dilution. Management is prioritizing financial flexibility and a clean debt profile even at the expense of near-term earnings per share.
The commentary accompanying the announcement connects NVIDIA, AMD, and Broadcom to this story. Investors tracking the AI infrastructure spending cycle should watch how those chipmaker relationships factor into how Meta ultimately deploys this capital.
Mentioned: META