Meta Plans to Sell Up to $95 Billion of New Stock to Pay for AI. Here’s What Dilution Costs You
Meta put a number on its AI bill, and part of it comes out of shareholders’ slices. The first $35 billion comes in public offerings, and up to $60 billion of nonvoting stock could follow from 2027.
By Sean Anees Saifi · Capital Wealth · Published Wednesday, October 28, 2026 · Source: The Wall Street Journal, Tuesday, October 27, 2026, whose market figures are the Monday, October 26 close (Business & Finance)
Key Points
Meta (META) plans to raise as much as $95 billion by selling new stock in waves. The money pays for the data centers behind its AI push, the Journal’s Connor Hart and Chelsey Dulaney report.
About $35 billion comes first, in public offerings. That’s $22.5 billion of Class A common stock plus $12.5 billion of preferred shares that must turn into common stock later.
A second program could sell up to $60 billion of new nonvoting Class C stock over time, starting as early as the first quarter of 2027. Meta says the details aren’t final.
Nvidia (NVDA), Advanced Micro Devices (AMD) and Broadcom (AVGO) have told Meta they may want up to $5 billion of the common stock. Meta’s suppliers would own a piece of their customer.
Meta fell 1.9% to $630.56 Monday and slipped to $620.19 Tuesday. Held at weight in 20 books; nothing added. Nvidia (31 books), Broadcom (29) and AMD (1) are held at weight too.
$95 billion
most Meta could raise in new stock, sold in waves for AI data centers
$60 billion
cap on the sale of new nonvoting Class C shares, possibly from early 2027
$145 billion
top of Meta’s expected capital spending this year, from $135 billion
$620.19
META close Tuesday, after a 1.9% fall Monday on the plan
Meta expects capital spending of $135 billion to $145 billion this year, and waves of new shares help pay for it.
In one line: Meta plans to sell up to $95 billion of new stock to fund AI, so every existing share owns a smaller slice, and we hold it at weight.
Last week Meta told the world it would create a new class of nonvoting stock. This week it said how much it wants to sell. Up to $95 billion, in waves. The money goes to the data centers behind its AI push. Meta’s stock fell 1.9% on Monday. If you own the shares, the word to understand this week is dilution.
Meta (META) laid out the plan on Monday, the Journal’s Connor Hart and Chelsey Dulaney report. Roughly $35 billion comes first, in public offerings. That’s $22.5 billion of regular Class A stock, plus $12.5 billion of preferred shares that must turn into common stock later. Then comes the bigger piece. Meta plans a program to sell up to $60 billion of new nonvoting Class C shares over time, as early as the first quarter of 2027. It says the details aren’t final. The company will also lean on its own cash flow, investment-grade bonds and partners.
Three of those partners are its chip suppliers. Nvidia (NVDA), Advanced Micro Devices (AMD) and Broadcom (AVGO) have told Meta they may want up to $5 billion of the common stock. That’s the part that makes some investors uneasy. Nvidia already holds big stakes in customers like OpenAI and CoreWeave. If AI spending slows, a supplier that owns its customer’s stock gets hit twice. It sells fewer chips, and the shares it holds fall too.
What dilution means
Think of a company as a pizza. Each share is a slice. When the company sells new shares, it cuts the pizza into more slices. Your slice gets thinner. That’s dilution. It’s worth it only if the new money grows the pizza by more than the slices it gave away. Meta is betting that it does. It expects to spend $135 billion to $145 billion this year on capital projects. Across the country, AI infrastructure spending is projected at $10.3 trillion from 2025 to 2032. Nobody knows yet what all that spending earns.
Our read
This is Investments and Risk (IN04). We wrote last week that Meta’s cash is the thing to watch, and this plan proves the point. A company that can’t fund its spending from cash flow goes to shareholders and lenders for the rest. The nonvoting shares let Meta do that without giving up control. That’s fine for Meta. For a holder, it means your share of any future profit shrinks a little with each wave. Meta is held at weight in 20 books; nothing added. Nvidia, Broadcom and AMD are held at weight too.
The one concrete thing in your plan is your AI builder slice. Meta, Nvidia and Broadcom sit in the same basket now, and the basket is starting to fund itself. The one check this week is to add up what you own in those names, directly and through your index funds. Then ask whether a bad quarter for one would spill into the others. If that total surprises you, that’s your umbrella check, done on a dry day.
What It Means For Your Portfolio
Hold. Size your AI builder slice before the next wave
Each wave of new Meta stock thins every existing share, so size your whole AI builder slice, and treat Meta, Nvidia and Broadcom as one risk.
General planning principles, not advice for anyone in particular. When a company you own sells new stock, write down why. Ask whether it’s funding growth it can’t pay for from cash flow, or covering a problem. Then check the size of that stock and its close cousins in your mix. If Nvidia and Broadcom buy in, their fortunes get tied a little tighter to Meta’s, so count the three together when you size the risk.
Nonvoting shares keep control with the founder. That’s a feature for him and a thing to know for you.
