Meta Upsizes Equity Offering as It Seeks Almost $98 Billion

Meta is raising significantly more capital than it is spending in 2026, increasing its cash reserves.

Meta Platforms announced a substantial financing plan to support its ambitious investments in artificial intelligence infrastructure and personal superintelligence. The company launched concurrent underwritten public offerings totaling approximately $35 billion, comprising $22.5 billion in Class A common stock and $12.5 billion in depositary shares representing Series A Mandatory Convertible Preferred Stock. Meta also revealed plans for a potential $60 billion at-the-market (ATM) program upon the commencement of trading for its newly established Class C common stock. The company anticipates capital expenditures between $135 billion and $145 billion in 2026, funding these with operating cash flow, debt, partnerships, and equity. Meta generated $97 billion in operating cash flow in the first three quarters of 2026 and holds approximately $82 billion in cash, cash equivalents, and marketable securities. The company's preferred stock is expected to convert into Class A or Class C common stock by August 15, 2029.

Meta's dual-track financing strategy, combining immediate equity offerings with a future large-scale ATM program tied to its new Class C stock, signals a proactive approach to securing capital for its aggressive AI buildout. This move positions Meta to cover projected 2026 capital expenditures of $135-145 billion, even after accounting for its substantial operating cash flow and existing cash reserves. The company's emphasis on personal superintelligence and enterprise AI solutions suggests a long-term vision that requires massive, sustained investment in infrastructure and compute.

The success of these offerings and the future ATM program will be critical indicators of investor confidence in Meta's AI strategy and its ability to monetize emerging technologies like personal agents and business AI. The conversion of preferred stock into Class C shares, contingent on regulatory and corporate governance milestones, highlights the evolving structure of Meta's capital, potentially diluting existing Class A shareholders upon conversion and signaling a new phase of corporate development focused on long-term AI-driven growth.