Chip suppliers Nvidia, AMD and Broadcom expressed nonbinding interest in buying up to $5 billion combined of the Class A shares at the offering price. Beyond the initial $35 billion Offerings, Meta plans a $60 billion at-the-market program for its new nonvoting Class C shares starting in the first quarter of 2027 after the share class takes effect Jan. 19, preserving CEO Mark Zuckerberg's voting control. The $95 billion package exceeds Alphabet's $85 billion equity offering announced in June and restricts Meta from paying common dividends or repurchasing Class A stock unless preferred dividends are paid in full.
The fundraising follows third-quarter results in which an 80% year-over-year surge in capital expenditures to $34.91 billion outpaced $32.79 billion in operating cash flow, pushing free cash flow to negative $2.12 billion for Meta's first quarterly shortfall since its 2012 IPO. Meta narrowed its full-year 2026 capital spending forecast to between $135 billion and $145 billion as it builds four AI clusters exceeding 1 GW each, after disclosing that internal board forecasts in May showed a need to raise hundreds of billions of dollars over several years starting this fall.