Meta Raises Potential AI Expansion Financing to $97.5 Billion

Key Facts

On October 27, Meta raised the total potential financing for its AI expansion to $97.5 billion, after increasing its two underwritten offerings to $37.5 billion and adding a separate at-the-market share-sale program that could reach $60 billion, according to Reuters. Nvidia announced a $3 billion investment in the offering, while AMD announced a $1 billion investment. The investments came after Nvidia, AMD and Broadcom indicated non-binding interest totaling up to $5 billion. The company expects the at-the-market program to begin after Class C shares start trading in the first quarter of 2027. The proposed financing puts the scale of Meta’s capital needs at the center of debate over how to fund the computing infrastructure required for its expansion.

The underwritten offering consists of $25 billion in common stock, alongside 250 million depositary shares, each representing a 1/20 interest in a share of mandatory convertible preferred stock, according to Meta’s filing with the U.S. Securities and Exchange Commission. The company thereby increased the size of the two offerings to $37.5 billion, while the proposed $60 billion program remains a separate transaction whose conditions have not yet been met. The filing allows the underwriters, for 30 days, to purchase up to 37.5 million additional depositary shares in the preferred-stock offering and up to an additional $3.375 billion in common stock to cover overallotments. Each depositary share converts into shares under the terms specified for the offering. If conversion does not occur earlier, settlement is scheduled for around August 15, 2029.

The at-the-market program is not guaranteed financing or part of the underwritten offering currently being carried out; the $60 billion figure is a potential ceiling, and the program’s launch is tied to Class C shares trading, which is expected in the first quarter of 2027, according to Reuters. The combined potential value of the two offerings and the program is $97.5 billion, but the program’s future timing means that figure combines current financing with a later option. Nvidia and AMD’s participation in the offering creates a direct link between chip suppliers and a customer expanding its infrastructure investment, while the indications of interest that included Broadcom remain non-binding. This distinction gives investors a clearer picture of the portion that has entered the offering stage and the portion still contingent on a later step. The question of how to finance the expansion is expected to remain a focus as the company advances its plan.

Meta’s third-quarter results show strong revenue growth alongside a sharp increase in costs. Revenue was $64.601 billion in the quarter ended September 30, 2026, compared with $51.242 billion in the corresponding period of 2025. At the same time, expenses and costs rose to $51.613 billion from $30.707 billion. Operating margin fell to 20% from 40% a year earlier, according to the company’s quarterly report. The figures put business growth against the rising cost of operating it, as Meta seeks to fund a further expansion of its computing capacity.

Meta attributed advertising revenue growth to improvements in targeting and measurement tools, while ad impressions increased 10% year over year in the third quarter and 14% in the first nine months of 2026. The average price per ad rose 14% in the quarter and 13% in the nine months, according to the company’s filing. The divergence between these indicators, revenue growth and pressure on margins and quarterly cash flow forms the financial backdrop to the offering.

The financing announcement and company results affected the stock’s trading over two consecutive days. Meta shares closed at $630.56 on October 26, then at $620.19 on October 27, according to EL7 data. William Blair analysts said investors would continue to ask how the expansion would be financed and whether additional capital might be raised in the future. The analysts said the plan reflects Meta’s confidence in the long-term returns from AI, alongside the rising capital intensity required to pursue that opportunity, according to Reuters. The at-the-market program, expected to begin in the first quarter of 2027 after Class C shares start trading, remains the next dated stage in the financing plan.