No new token, just a $35 billion Meta stock offering to feed the AI compute boom

Meta launched two offerings worth around $35 billion on Monday to finance an AI infrastructure expansion that the company estimates will require $135 billion to $145 billion in capital expenditures in 2026. One offering is $22.5 billion in Class A common stock, while Nvidia, AMD and Broadcom have expressed nonbinding interest in purchasing up to $5 billion in shares.

Meta shares fell about 2% after the announcement, and the company is considering another $60 billion offering for 2027. The capital program includes new data centers and four computing clusters, each with over one gigawatt of capacity. Meta plans for its general infrastructure capacity to nearly double this year as demand for AI services continues to increase.

The company recently increased the low end of its capital expenditure estimate to $130 billion before raising the range to $135 billion to $145 billion. Its expansion includes AI services beyond social media, notably the launch of its Muse Wonder AI models, which require additional computing power to develop and operate.

Meta’s revenue grew 26% in the third quarter to $64.6 billion, but increased infrastructure investment remained a drag on cash generation. The company reported negative free cash flow of $2.12 billion, with its latest financing plans closely tied to future investment needs.