Meta Launches $35 Billion Equity Offering to Fund Artificial Intelligence Buildout

Meta Platforms has launched concurrent equity offerings of about $35 billion, consisting of $22.5 billion in Class A common stock and $12.5 billion in mandatory convertible preferred stock, alongside plans for a $60 billion Class C offering starting in the first quarter of 2027. Key semiconductor partners Nvidia, AMD, and Broadcom expressed non-binding interest to purchase up to $5 billion combined of the Class A shares. The capital raise follows surging 5-year credit default swaps that reached a record 114.79 basis points and a third-quarter free cash flow shortfall of negative $2.12 billion after Meta raised its 2026 capex guidance to $135 billion to $145 billion.