Meta plans record $95 billion share sale to fund AI
Meta has announced plans to raise up to $95 billion in new equity to fund AI infrastructure and superintelligence work. The company also disclosed its first negative free cash flow in more than a decade in the third quarter.
What happened
On 26 October Meta announced its largest-ever equity raise, up to $95 billion. About $35 billion comes from public offerings of common and convertible preferred stock. The remaining $60 billion will come through an at-the-market programme, expected to start after new non-voting Class C shares begin trading in the first quarter of 2027.
It is one of the largest equity raises any company has planned; Alphabet was reported to be seeking around $85 billion from share sales in the same period. The money will fund data centres, chips and Meta's superintelligence research, which the company treats as its top strategic priority.
The numbers
Meta burned $2.12 billion in cash in Q3, its first negative free cash flow in more than a decade. It held $82.45 billion in cash and securities and $80.92 billion in long-term debt at 30 September, and raised its 2026 capex range to $135–145 billion. Nvidia, AMD and Broadcom signalled non-binding interest in up to $5 billion of shares.
Market reaction
Shares fell 1.4–1.6% in morning trade on dilution worries, with some reports citing deeper intraday losses. Meta sold a record $30 billion of bonds earlier in October and struck a $27 billion financing deal with Blue Owl.
Investors worry less about Meta's ability to pay than about how long AI spending will run ahead of AI revenue. A negative free cash flow quarter at one of the most profitable companies in the world is the clearest sign yet of that gap.
Key terms
Dilution shrinks each existing share's stake when new stock is issued. An at-the-market programme sells shares gradually on the exchange. Non-voting shares give economic exposure without votes, preserving founder control.
What comes next
Morgan Stanley estimates half of roughly $3 trillion in planned data-centre spending through 2028 must come from outside hyperscalers' own cash. Apollo's Torsten Slok notes AI has shown little financial payoff outside tech so far.
What it means for your business
- Do not rely on free AI features; they may move into paid tiers.
- Watch ad costs as Meta seeks returns on its spending.
- Measure your own AI return in hours saved or customers won.