Meta Platforms has launched approximately $35 billion of concurrent public equity offerings and plans to establish an approximately $60 billion at-the-market program as the company expands investment in artificial intelligence infrastructure and personal superintelligence.
The underwritten offerings consist of approximately $22.5 billion of Class A common stock sold through forward sale agreements and approximately $12.5 billion of depositary shares representing interests in newly issued Series A Mandatory Convertible Preferred Stock.
Meta is offering 250 million depositary shares, with each representing a 1/20th interest in a share of the preferred stock. The underwriters will also have a 30-day option to purchase up to an additional 37.5 million depositary shares.
The company also expects to grant underwriters of the Class A offering an option to purchase up to an additional $3.375 billion of shares.
Meta plans to use proceeds from the offerings for general corporate purposes while supporting an investment program centered heavily on AI infrastructure and computing capacity.
The company expects capital expenditures of $135 billion to $145 billion in 2026. Meta generated $97 billion of operating cash flow during the first three quarters of the year and held approximately $82 billion of cash, cash equivalents, and marketable securities at the end of the third quarter.
Meta said it intends to finance its investment plans through a combination of operating cash flow, investment-grade debt, strategic partnerships, and equity capital.
The planned $60 billion at-the-market program would involve Meta’s Class C common stock and is not expected to begin until the first quarter of 2027, following the commencement of trading in the new share class. The company has not yet entered into an agreement for the program, and its timing and ultimate size remain subject to change.
Meta currently owns data centers in 23 U.S. states and is constructing four superclusters with more than one gigawatt of capacity each. The company said it is on track to nearly double its total infrastructure capacity in 2026 compared with the prior year.
Nvidia, Advanced Micro Devices, and Broadcom have also indicated interest in purchasing up to an aggregate $5 billion of Meta Class A shares in the offering. The indications are non-binding.
Support: Morgan Stanley and Goldman Sachs are serving as lead joint bookrunning managers for the offerings.
KEY QUOTES:
“AI is creating significant opportunities for Meta across its core business and new products and services. Meta’s AI investments are already generating tangible returns through increased engagement, improved advertising performance, and increased monetization.”
“Meta is investing to expand the infrastructure and compute capacity needed to support these opportunities and to bring personal superintelligence to billions of people and businesses.”
Meta Platforms
