Meta launched a $35 billion equity offering to fund its artificial intelligence infrastructure buildout: $22.5 billion in common stock and $12.5 billion in convertible preferred shares.
The company targets $135 billion to $145 billion in capital expenditures for 2026, up sharply from prior guidance. That spending will fund new data centers, custom silicon development, and advanced cooling technologies. Meta also plans another $60 billion stock-sale program for 2027, signaling a prolonged period of heavy investment.
Nvidia, AMD, and Broadcom have expressed interest in investing up to $5 billion combined in the offering. The chipmakers' participation secures Meta's AI hardware supply chain and underscores the deep capital requirements for advanced systems.
The dilution calculus is straightforward: issuing $22.5 billion in common stock increases Meta's share count, pressing future earnings per share even if net income grows. Investors face a core trade-off—betting that the AI infrastructure investment generates returns exceeding the near-term per-share dilution, or treating the raise as a warning sign that management is sacrificing shareholder value to win a capex arms race with limited visibility on payoff timing or magnitude. The stock's muted near-term reaction masks the long-term capital intensity embedded in Meta's strategy.
