Meta Announces Equity Financing Plan of Up to $95 Billion to Fund AI Expansion
Key Facts
On October 26, Meta announced an equity financing plan of up to $95 billion, split between two public offerings and a subsequent at-the-market sale program, to support its investments in AI infrastructure and opportunities. The plan coincides with the re-election of Luiz Inácio Lula da Silva as Brazil’s president, a separate development that affected Asian trading in Brazilian assets. According to Bloomberg, the plan includes about $35 billion in common and preferred shares offered for subscription, and up to $60 billion through an at-the-market sale program. The total amount of $95 billion is the plan’s ceiling, not proceeds confirmed as already raised. Meta said the funds would support its investments in AI infrastructure and related opportunities.
The at-the-market sale program accounts for the larger share of the potential financing, at up to about $60 billion, while the two public offerings are valued at about $35 billion, according to Bloomberg. This structure means the total combines public offering financing with an additional sale program, rather than a single offering worth $95 billion. Meta said the program may not begin before the first quarter of 2027, and its timing and terms have not yet been specified. The amount actually raised through this route therefore depends on when the program begins and on its terms. In the stock market, Meta shares closed at $642.62 on October 23, down from $705.44 on October 19, according to EL7 data.
Investing.com said Nvidia, AMD and Broadcom had expressed non-binding interest in purchasing up to $5 billion combined in Class A shares as part of the public offering. This interest does not represent a commitment to buy that amount; the three companies may buy more or less, or no shares at all. This separates the plan’s total size of $95 billion from the companies’ potential buying interest, which concerns Class A shares in the public offering. Meta ties the use of the funds to AI infrastructure and the opportunities it sees in the field. Including the two public offerings and the at-the-market sale program makes the plan a combination of announced financing and a future route whose details have not yet been specified.
In Brazil, Lula won the runoff on October 25, securing 64.256.232 votes, or 51,79% of valid votes, against 59.826.041 votes for Flávio Bolsonaro, equal to 48,21%, according to the Superior Electoral Court. The result came after Brazilian stocks had closed on Friday about 7% above their level before the first round, while the real was about 5% stronger against the dollar, according to a Reuters report. The report said November real futures fell 10% during Asian trading hours on October 26, while the Nomura NF Ibovespa Link ETF listed in Tokyo fell 15%. These moves reflect the market’s shift from pricing in the possibility of political change to absorbing the election result, as positions built on expectations of a rival defeating Lula were unwound. The timing of this development alongside Meta’s financing announcement does not establish a causal link between the two events.
Reuters said investors had expected Flávio Bolsonaro to cut fiscal spending and ease regulatory restrictions, and that Lula’s victory could prompt the unwinding of political-change bets during a volatile week. Money Times quoted the chief emerging-markets economist at Capital Economics as saying Lula’s victory “will dash hopes for reforms that would have improved public finances and strengthened growth prospects.” These expectations link the election result with investors’ concerns about the course of reforms, public finances and growth, while the Asian losses show a retreat in assets that had risen before the vote. Separately, the Federal Reserve will hold its next meeting on October 27 and 28, 2026, according to its official schedule; the meeting ends on October 28. Meta says its at-the-market sale program may not begin before the first quarter of 2027.