Meta’s potential AI funding package now totals $97.5 billion. But only $37.5 billion comes from offerings with announced pricing. The remaining $60 billion depends on a future share-sale program Meta has not finalized.

On Monday, October 26, Meta priced 250 million depositary shares at $50 each. They represent $12.5 billion in mandatory convertible preferred stock. Alongside the $25 billion common-stock offering, the priced offerings total $37.5 billion.

  • $12.5 billion in mandatory convertible preferred stock
  • $25 billion in common stock, through forward sale agreements
  • Up to $60 billion from a proposed future share-sale program

The $97.5 billion figure is potential funding capacity, not cash Meta has received.

The biggest piece is still uncertain

Meta has not entered an agreement for the planned at-the-market share-sale program. Its timing, size and terms remain undecided, and the company says it may not establish the program at all.

The plan is tied to the start of trading in Meta’s new Class C shares, which the company expects in 2027. That makes the $60 billion component a proposal, not a committed source of funds.

The $25 billion common-stock offering also uses forward sale agreements. Meta does not expect to receive those proceeds at the initial sale. It expects settlement by November 19, 2027, subject to the agreements’ terms and adjustments.

Spending is already outpacing operating cash flow

Meta’s latest quarterly figures show why the financing matters. In the three months ended September 30, the company generated $32.79 billion in cash from operating activities and reported $34.91 billion in capital expenditures, including finance-lease payments.

Meta reported negative free cash flow of $2.12 billion for the quarter. That measure is non-GAAP, meaning it is calculated outside standard accounting rules.

Meta expects 2026 capital expenditures of $135 billion to $145 billion, including principal payments on finance leases. It raised the lower end of its previous range from $130 billion to $135 billion.

The company also held $82.45 billion in cash, cash equivalents and marketable securities on September 30. That reserve provides important context: one quarter of negative free cash flow is not the same as running out of cash, but the planned spending is large enough to make financing choices consequential.

Meta has said it plans to fund investment through operating cash flow, investment-grade debt, partnerships and equity. The new offerings add a substantial equity component as it builds AI infrastructure. Reuters reported the launch of the initial offerings as Meta sought funding for its AI expansion.