Daily newsletter · Wed 28 Oct 2026
Meta lifted its share sale to US$97.5 billion, and Nvidia and AMD are buying in
Meta raised its planned share sale on Tuesday to as much as US$97.5 billion, its largest equity raise ever. The shares fell 1.64% to US$620.19, after a 1.88% fall on Monday when the plan was first announced.
Why would one of the world's most profitable companies sell shares? Its spending has caught up with its cash. Meta's free cash flow was negative US$2.1 billion in the September quarter, the first time in more than a decade it has gone below zero.
The money arrives in stages. Meta sold US$25 billion of ordinary shares at US$625 each and US$12.5 billion of preferred shares, which convert into ordinary shares in 2029. Up to US$60 billion more will be sold gradually on the market from early 2027.
There is a timing twist as well. The ordinary shares were sold under forward agreements, so Meta does not expect that US$25 billion to land until as late as November 2027.
Two suppliers are joining in. Nvidia will invest US$3 billion in Meta and AMD US$1 billion, and both sell Meta the chips the money is meant to buy.
Meta expects to spend US$135 billion to US$145 billion on equipment and buildings this year, and has given no figure for 2027. Every share it sells gives existing owners a smaller slice. For them, AI revenue has to grow faster than the share count does.
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