Meta $98B Equity Raise: 5x Oversubscribed AI War Chest

Meta's expanded $25 billion common stock offering was reported to be about five times oversubscribed, priced at $625 per share, a roughly 2.7% discount to the pre-announcement close. Alongside a $12.5 billion mandatory convertible preferred issue that was also heavily oversubscribed, the two offerings total about $35 billion, and a further at-the-market program of up to $60 billion is planned to start after new Class C shares begin trading in the first quarter of 2027.

The full package approaches $98 billion, which would rank among the largest equity raises in history, earmarked for AI infrastructure and the company's personal superintelligence push. Meta had about $82 billion in cash and securities at the end of September, but the pace of its compute buildout outstrips internal cash generation, with 2026 capex guided at $135 billion to $145 billion.

Cornerstone interest came from the supplier side: NVIDIA committed $3 billion, AMD $1 billion, and Broadcom signaled intent for up to $5 billion, formalizing the pattern of chipmakers financing the customers who buy their silicon. Meta is building four superclusters each exceeding one gigawatt and expects total infrastructure capacity to nearly double in 2026.

For component procurement, the raise de-risks a massive order book: server boards, power shelves, busbars, liquid-cooling loops and 800G networking for AI datacenter builds now have funded backing through 2027. The flip side is dilution and a supply of new equity that, together with other mega-raises this month, is absorbing liquidity across tech markets.

Hardware suppliers should also note Meta's efficiency push: management plans to cut Muse's compute cost per user by more than tenfold within a year through inference optimization and off-peak utilization, which will shift some demand from raw GPU additions toward memory upgrades and network refreshes.