Meta has priced two share sales that could raise about $37.5bn, after enlarging the deal on 26 October. It is selling 40 million Class A shares at $625 each, about $25bn, through forward sale agreements that Meta can settle as late as November 2027, plus about $12.5bn of mandatory convertible preferred shares that turn into common stock in 2029. Meta’s SEC filing says the money is for general corporate purposes. According to Reuters, Meta expects capital spending of $135bn to $145bn this year, mostly on computing for AI.
The same day NVIDIA said it would invest $3bn in Meta’s offering as part of a wider deal on Meta’s Muse models. Meta plans to expand its use of NVIDIA’s Vera Rubin systems and Vera CPUs, along with Spectrum-X networking and BlueField-4.
Meta also plans a separate sale of about $60bn of non-voting Class C shares into the market, expected to start in the first quarter of 2027, Reuters reported, although it has not yet signed an agreement to carry it out.
Why it matters: selling this much stock shows that AI building costs now outrun even Meta’s large cash flow, and reports say its free cash flow turned negative in the third quarter. NVIDIA buying into one of its biggest customers adds to a pattern of chipmakers investing in the companies that buy their chips.