Meta Expands Capital-Raising Plan to $97.5 Billion to Fund AI Investments
Key Facts
Meta raised its total capital-raising plan to $97.5 billion, a move to fund its AI expansion as it expects capital spending of up to $145 billion during 2026. Reuters reported that Nvidia announced a $3 billion investment in the offering, while Nvidia, AMD and Broadcom expressed interest in buying Class A shares worth up to a combined $5 billion. The plan comes as infrastructure costs weigh on the company’s quarterly results. Meta data showed its operating margin was 20% in the third quarter of 2026, compared with 40% in the same period a year earlier. Operating income also fell as costs and expenses rose.
Meta expects capital spending of between $135 billion and $145 billion in 2026 to support its AI efforts and core business, according to its quarterly report filed with the U.S. Securities and Exchange Commission. The expected spending provides the backdrop for the financing plan announced by the company, including expansion of the infrastructure needed for those efforts. But expense growth was already evident in third-quarter results: costs and expenses totaled $51.613 billion, compared with $30.707 billion in the third quarter of 2025. Over the same period, operating income fell to $12.988 billion from $20.535 billion. This drove the operating margin down to 20% from 40% a year earlier, according to Meta’s filing.
The financing picture includes more than the announced share issuance: Reuters reported that Meta also plans an at-the-market sales program worth up to $60 billion, after Class C shares begin trading, which is expected during the first quarter of 2027. That timing means the potential program would come at a later stage of the current capital-raising plan. The company tied its launch to the start of Class C trading, while Reuters reported that its value could reach the stated limit. The program adds a future financing option to the overall $97.5 billion plan. The next step linked to it remains the expected start of Class C share trading in the first quarter of 2027.
The financing plans coincided with volatility in technology shares linked to AI spending. In the October 22 session, Meta shares fell 7%, their biggest decline since July, while the Nasdaq Composite dropped 2.6%, its steepest fall since June 5, according to Reuters. The moves came amid a sell-off in shares of companies where investor concerns were tied to AI spending. Meanwhile, Meta had $82.45 billion in cash, cash equivalents and marketable securities as of September 30, 2026, compared with $80.92 billion in long-term debt. Reuters also reported that the company’s future spending commitments totaled about $825 billion, driven mainly by data centers, AI infrastructure and cloud computing.