On October 26, 2026 Meta launched public stock offerings of about $35 billion and said it is preparing another program of up to $60 billion. It's the clearest sign yet that cash flow no longer covers the compute race.
What Meta Actually Launched
According to the launch documents and coverage from CNBC, Yahoo Finance and Quartz, Meta announced two simultaneous underwritten offerings. The first is roughly $22.5 billion of Class A common stock tied to forward sale agreements; the underwriters also hold a 30-day option for an additional $3.375 billion. The second is roughly $12.5 billion of depositary shares, each representing 1/20 of a Series A mandatory convertible preferred share, priced to the public at $50 per depositary share. Meta said it will use the proceeds of that second offering for "general corporate purposes."
Separately, Meta said it plans an at-the-market (ATM) program of up to $60 billion, which would begin once the new non-voting Class C shares start trading, expected in the first quarter of 2027. Adding the three pieces together, several outlets cite a raise of around $95 billion, though the total depends on the ATM program being executed in full.
How Each Piece Works
Common stock is the simplest: immediate dilution in exchange for cash. The mandatory convertible preferred works differently: the investor holds an instrument that later converts into Class A shares, at a conversion rate that depends on the stock price relative to an "initial price" tied to the common offering. For the company it defers part of the dilution; for the investor it usually pays a yield while they wait. The ATM, meanwhile, sells shares gradually on the open market, without one large issuance that moves the price all at once.
Chip Suppliers as Buyers
Meta disclosed that Nvidia, AMD and Broadcom indicated interest in buying Class A shares in the offering, for up to $5 billion combined. The indications are non-binding. A Forbes article attributes $3 billion specifically to Nvidia, but that figure doesn't match the filing as described by other outlets, so we don't treat it as confirmed. What is verifiable is the pattern: chip suppliers are funding part of the demand that then buys their chips.
What It Means If You Buy AI
Sources: CNBC (October 26, 2026), Yahoo Finance, Quartz, TIKR, Forbes and the 424B5 prospectuses filed with the SEC. Final terms may change at pricing.