Meta prices a larger stock offering as Nvidia and AMD commit $4 billion
The common-stock offering grows to $25 billion, alongside $12.5 billion of preferred depositary shares.
Meta has increased its Class A common-stock offering to $25 billion from $22.5 billion and priced it at $625 a share. The company also priced 250 million depositary shares representing mandatory convertible preferred stock at $50 each, a separate $12.5 billion offering.
The two priced offerings total $37.5 billion before any additional purchases under the underwriters' options. They sit alongside a separate plan to sell up to $60 billion of shares over time. Together, the plans amount to as much as $97.5 billion, but that is not cash already received: the future sales program and the priced offerings are different parts of the financing.
The common-stock offering uses forward sale agreements. Meta expects to receive proceeds when those agreements settle, on or before November 19, 2027. That makes the timing of the cash different from the date the offering is priced. Both priced offerings are expected to close October 29, subject to closing conditions.
Nvidia and AMD have separately announced that they will invest $3 billion and $1 billion, respectively, in Meta's equity offering. Those commitments put chip suppliers on the funding side of a major customer's AI expansion, as well as on the equipment side. An investment announcement should not be read as proof that the money has already changed hands.
For readers following the AI buildout, the useful question is how each arrangement works. This equity financing is different from the hardware purchase-and-lease structure in the Broadcom and Anthropic financing story. One involves ownership stakes in a company; the other puts computing equipment in a separate vehicle and leases it to the user.
