🔍 Read the full analysis: A $95 Billion Stock Sale Adds To Big Tech’s AI Funding Story on ThorstenMeyerAI.com
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TL;DR
Meta disclosed plans to raise up to $95 billion through stock offerings, while Microsoft offered a voluntary exit package to about 60,000 eligible employees. The developments come as both companies face rising costs from large investment programs, including AI infrastructure, but the source does not establish that AI alone drove either move.
Meta disclosed plans to raise up to $95 billion through a multistage stock offering, while Microsoft offered voluntary departures to about 60,000 employees, in two developments that put renewed attention on how large technology companies are financing and adjusting to major investment plans. The source links the moves to an industry-wide AI build-out, but the available details do not show that AI is the sole reason for either decision.
Meta’s October 26 filing describes an initial financing package of about $35 billion: $22.5 billion in Class A shares through forward sales and $12.5 billion in mandatory convertible preferred stock. The company also plans a separate $60 billion at-the-market program in new, non-voting Class C shares beginning in early 2027. That later program has not yet been set up, so the full amount is a plan rather than cash already raised.
The funding plan arrives as Meta expects to spend $135 billion to $145 billion on capital projects this year, according to the source. Its free cash flow was negative $2.12 billion in the third quarter, compared with positive $10.63 billion in the same quarter a year earlier. Those figures provide financial context for the offering, but do not establish that the stock sale is attributable only to AI spending.
Microsoft’s offer covers about 60,000 employees in participating teams in the United States, Canada, the United Kingdom and India, at level 70 or below. The package is described as standard severance, including pay based on tenure and level, continued stock vesting, healthcare for a fixed period and career-transition support. Employees are expected to decide by the first week of December and, if they accept, leave on December 31. The figure is the number eligible, not a forecast of departures.
Infographic 01 · Two ways to pay
Buyouts for 60,000 people. Up to $95 billion in new stock.
On the same Monday, Microsoft opened a voluntary exit window and Meta launched its largest equity raise. What each offer actually contains.
Microsoft pays with people
Voluntary Exit Offer, memo of 26 Oct 2026
- Where: US, Canada, UK, India; level 70 and below (up to general managers, some VP titles) company figure
- Teams in: AI experiences, Copilot, finance, HR, Xbox, Windows + Devices unnamed source
- Teams out: sales; outlets also name marketing, data centers, security, some engineering
- Package: standard severance: base pay by tenure and level, stock vesting continues, healthcare for a fixed period, career help company figure
- Take-up: no target; expected well below the ~30% of the spring retirement offer
Meta pays with shareholders’ money
Financing plan, SEC filing of 26 Oct 2026
Total: up to about $95 billion. Nvidia, AMD and Broadcom indicated interest in up to $5.0 billion in total non-binding. The $60 billion program plan, not set up.
Different instruments, one bill: the AI build-out.Meta Q3 free cash flow −$2.12 billion; Microsoft property and equipment spending $115.9 billion in fiscal 2026
Sources: GeekWire, CNBC, Reuters (26 Oct 2026); Meta free writing prospectus (SEC, 26 Oct 2026); Meta Q3 2026 results (21 Oct 2026); Microsoft 10-K FY2026.
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Who Bears the AI Investment Costs
These announcements show two different ways major technology companies can respond to costly expansion: raising equity from investors and offering employees a supported route out. Meta’s proposed financing could increase the supply of its shares and affect existing shareholders’ ownership, though the scale and timing depend on the planned offerings. Microsoft’s program could change staffing in participating units, but the actual number of employees who leave is not yet known.
The timing matters because spending on computing facilities and other capital assets has risen sharply at both companies. Microsoft recorded $115.9 billion in property and equipment additions in its last fiscal year, up from $64.6 billion a year earlier. The source also reports a forecast of $175 billion in capital expenditure for calendar 2026. The figures indicate the scale of investment; they do not, by themselves, show how much is specifically for AI or what financial returns it will produce.
For readers, the central issue is how companies balance those commitments with shareholder dilution, cash generation and workforce decisions. The developments are evidence of pressure around funding and organization, not proof that AI spending directly caused every financing or staffing choice.
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Microsoft’s Offer and Recent Cuts
Microsoft’s offer follows other workforce actions this year. In spring, the company ran a voluntary retirement program for roughly 8,750 eligible U.S. employees; about 30% accepted, according to the source. Microsoft recorded a $900 million charge for that program. Chief People Officer Amy Coleman said the participation reduced the size of layoffs that followed: about 4,800 jobs were cut in July. The company also cut more than 15,000 jobs in 2025.
Microsoft’s headcount reached 223,000 employees as of June 30, 2026, down from 228,000 in 2024 and 2025. It had employed about 144,000 people in 2019 and 221,000 in 2022; acquisitions contributed to that earlier expansion. The current offer is not confined to teams outside AI: the reported eligible groups include AI experiences and Copilot. Sales is excluded, and published accounts differ on some other participating and excluded teams.
The company has said the voluntary offer does not replace layoffs, which remain possible depending on business conditions. Microsoft’s quarterly results were scheduled for October 28, two days after the announcements, offering a near-term opportunity for investors to hear more about spending and the workforce program.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.”
— Amy Coleman, Microsoft’s chief people officer, in a memo quoted by GeekWire and Reuters
What the Announcements Do Not Establish
Microsoft has not stated a target for how many employees it expects to accept the offer. The reported expectation is that take-up will be well below the roughly 30% participation in the spring retirement program, but that is not a confirmed outcome. The company has also said layoffs remain possible. Published reports do not fully agree on every team covered or excluded.
For Meta, the filing sets out the structure and possible scale of the planned financing, but the later $60 billion program is not yet established and the full amount has not been raised. The source does not provide terms for every later sale or a detailed breakdown of how proceeds will be allocated. Nor does the information establish that AI investment alone explains Meta’s cash flow position, Microsoft’s workforce offer or either company’s broader financial decisions.
December Decisions and Meta’s Planned Sales
Microsoft employees covered by the offer are expected to decide by the first week of December, with departures scheduled for December 31. The company’s October 28 results may provide further information about its spending and the expected cost of the program, although the source does not confirm what management will disclose.
Meta’s initial offerings and their proceeds will be followed by the proposed at-the-market Class C share program, planned for early 2027. That program has not yet been set up. Its timing and execution, along with the number of Microsoft employees who accept the offer, remain the main near-term developments to watch.
Key Questions
Has Meta already raised $95 billion?
No. The filing describes an initial package of about $35 billion and a planned $60 billion share-sale program for early 2027. The later program has not yet been set up, and the full $95 billion has not been raised.
How many Microsoft employees are expected to leave?
The offer covers about 60,000 eligible employees, but Microsoft has not stated how many it expects to accept. Eligibility is not the same as a confirmed departure count.
Does Microsoft say the offer is caused by AI?
The source does not report Microsoft saying that AI caused the offer. Some reported eligible teams work on AI experiences and Copilot, while the company described the program as a way for employees to leave with support and for organizations to adjust staffing.
Could Microsoft still make layoffs?
Yes. Microsoft said the voluntary offer does not replace layoffs, which remain possible depending on business conditions.
Why is Meta seeking new equity?
Meta’s filing says the offerings support continued investment in AI infrastructure and personal superintelligence. The source also reports planned capital spending of $135 billion to $145 billion this year and negative third-quarter free cash flow. Those details provide context but do not prove that AI is the only reason for the financing.
Source: ThorstenMeyerAI.com
