Meta sells $35 billion of stock for AI, and Nvidia, AMD and Broadcom may buy

What was announced. Meta Platforms launched two separate underwritten offerings. The first is $22.5 billion of Class A common stock through forward sale agreements. The second is 250 million depositary shares, each a 1/20th interest in a share of Series A mandatory convertible preferred stock with a $1,000 liquidation preference. Quartz puts that at about $12.5 billion. Neither offering depends on the other. Morgan Stanley and Goldman Sachs lead the deal.

How the money arrives. Meta gets no cash up front from the common stock. Shares will be delivered on one or more dates Meta chooses, no later than 19 November 2027. Underwriters get an option on another $3.375 billion of stock. The preferred stock converts automatically around 15 August 2029, and its terms, including the dividend, are set at pricing. Meta plans to list the depositary shares on Nasdaq as METAM.

Up to $60 billion more later. Meta will also set up an at-the-market (ATM) program to sell up to $60 billion of Class C stock. It is not expected to start before the first quarter of 2027, after Class C shares begin trading. That is how the Financial Times gets to a total of about $95 billion.

Who may buy. Nvidia, AMD and Broadcom have indicated interest in buying up to $5 billion of Class A stock in total, at the same price as everyone else. It is not binding: each may buy more, less or nothing.

Why. Meta says the money supports its investment in AI infrastructure and 'personal superintelligence'. In the same release it said more than 10 million people in the US and Canada started using its Muse AI service in the first weeks after launch.

Meta's share price on Freekonomist: https://freekonomist.com/en/stocks/meta/.

Confirmed facts

• On 26 October 2026 Meta announced an offering of $22.5 billion of Class A common stock through forward sale agreements and 250 million depositary shares, each a 1/20th interest in a share of Series A preferred stock.^[1][2]
• The preferred stock has a $1,000 liquidation preference and converts automatically into common stock around 15 August 2029; the dividend and terms are set at pricing.^[1]
• Meta will deliver the forward-sale shares no later than 19 November 2027 and does not expect to receive proceeds from them up front.^[1]
• Underwriters get a 30-day option on another $3.375 billion of Class A stock.^[1]
• Meta plans an ATM program for up to $60 billion of Class C stock, not starting before the first quarter of 2027.^[1]
• Nvidia, AMD and Broadcom indicated a nonbinding interest in buying up to $5 billion of Class A stock in total, at the same price.^[1][2]
• The Financial Times describes the plan as a $95 billion stock offering to fund AI expansion.^[3]
• Morgan Stanley and Goldman Sachs are the lead bookrunners; the depositary shares are to be listed on Nasdaq as METAM.^[1]

Implications

• ConfirmedMeta's share count will rise, so each existing holder owns a smaller slice.
• Our readingIf the chip makers buy, it would show they want to stay close to one of their biggest customers.
• Our readingA sale this large can weigh on Meta's share price while the offering runs.

Still unknown

• The offering price and the preferred dividend rate.
• How much Nvidia, AMD and Broadcom actually buy.
• When and how much Meta will really sell through the ATM program.

Who it affects

United States, Global. People who hold Meta or US tech funds and follow the AI spending race

Sources

1. Meta (PR Newswire): Meta Announces Launch of Offering of Depositary Shares Representing Series A Mandatory Convertible Preferred Stock and Offering of Class A Common Stock in Connection with Forward Sale Agreements October 26, 2026 · official
2. Quartz: Meta is raising about $35 billion in stock for AI, with Nvidia and AMD as potential buyers October 26, 2026 · media
3. The Irish Times (Financial Times): Meta plans $95bn stock offering to bankroll AI expansion October 26, 2026 · media