Meta has drawn interest from Nvidia, AMD, and Broadcom to buy up to $5 billion of its new Class A common stock.
Meta launched ~$35 billion in stock offerings Monday to fund its AI buildout.
Cornerstone Investors can take more, fewer, or no stock
Meta’s filing calls the three chipmakers “Cornerstone Investors.” Their interest is part of a $22.5 billion common stock offering at the same price and terms as other buyers, amounting to as much as $5.0 billion.
None of this is binding. Any of the three can buy more, less, or no shares, and the underwriters can sell to them more, less, or none.
All three are among the key suppliers of chips for Meta. Monday’s $35 billion is the first leg of Meta’s plans to raise up to $95 billion in aggregate equity.
Next is an at-the-market program of ~$60 billion in nonvoting Class C shares. It is not expected to start until the first quarter of 2027, after the Class C stock commences trading.
Meta has not entered into agreements for the program. The size, timing, and terms have not been resolved, the company stated.
Morgan Stanley and Goldman Sachs settle forward sales by November 2027
Morgan Stanley and Goldman Sachs are forward purchasers of the common stock. Meta will deliver the shares and receive the cash on dates selected by Meta, no later than Nov. 19, 2027, so no proceeds from the sale are expected initially.
The other ~$12.5 billion is in the form of depositary shares (250 million). Each represents a 1/20th interest in one Series A mandatory convertible preferred share, which is expected to convert into common stock on or around August 15, 2029.
Meta sets the dividend rate at pricing and plans to list the depositary shares on Nasdaq under the symbol METAM. The underwriters are set to get 30-day options to purchase an additional $3.375 billion of common stock and 37.5 million depositary shares.
The Class C stock is part of a plan to give holders one non-voting share for every Class A or Class B share. Mark Zuckerberg can sell stock and keep the 60.6% voting control he held as of October 1, ahead of the Nov. 3 vote on California’s Proposition 40 wealth tax.
Meta increased the lower end of its 2026 capital expenditure forecast to $135 billion, while retaining the upper end at $145 billion, according to Cryptopolitan.
Free cash flow turned negative in the third quarter, a $2.12 billion burn and the first negative reading in over ten years, Meta’s quarterly results showed. Meta has also committed to spend ~$825 billion in the future, chiefly on data centers and computing power, its filing shows.
Cash, cash equivalents and marketable securities were $82.45 billion at the end of September, barely above long-term debt of $80.92 billion. Operating cash flow for the first three quarters of 2026 was $97 billion.
The company said Meta’s Aa3/AA- credit ratings permit it to access long-term debt efficiently. Meta shares fell as much as 4% on Monday before recovering to trade about 1% higher.
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