Meta plans $30 billion bond sale to fund AI expansion amid soaring costs
Oct 30 – Social media giant Meta Platforms (META.O) announced on Thursday that it plans to raise up to $30 billion in its largest-ever bond offering, reflecting the growing financial demands of artificial intelligence infrastructure expansion. The move comes as Big Tech accelerates investments in AI, fueling both operational costs and competitive pressures.
Meta’s filing indicated that capital expenditures in 2026 are expected to be “notably larger” than in 2025, driven by ambitious AI initiatives and data center projects. The company’s shares closed down over 11% on Thursday as investors weighed a 32% rise in costs against a 26% increase in revenue.
Details of the bond offering
The financing will be structured as a six-part bond sale, with maturities ranging from five to 40 years. Principal amounts for individual tranches range from $4 billion to $6.5 billion. Co-managers for the sale include Morgan Stanley, Allen & Company, and Blaylock Van, among others.
Meta’s last major bond issuance was in 2022, when it raised $10 billion from the debt market. The planned $30 billion offering underscores the scale of investment required to compete in the rapidly evolving AI sector.
Investment in AI and infrastructure
Last week, Meta secured $27 billion in private financing from Blue Owl Capital (OWL.N) to support its largest data center project, Hyperion, located in Richland Parish, Louisiana. According to Morgan Stanley estimates, major tech firms, including Alphabet (GOOGL.O), Amazon (AMZN.O), Microsoft (MSFT.O), CoreWeave (CRWV.O), and Meta, are set to spend roughly $400 billion on AI infrastructure in 2025.
Meta is also intensifying efforts to attract and retain AI talent, with CEO Mark Zuckerberg personally leading hiring for the newly reorganized Superintelligence Labs unit. Employee compensation, particularly for AI researchers and engineers, is expected to be the second-largest contributor to rising costs next year, according to Meta CFO Susan Li.
The company has also raised its capital expenditure guidance for 2025, now expecting $70 billion to $72 billion, up from a previous forecast of $66 billion to $72 billion.
Market reaction
News of the bond sale has influenced broader markets, triggering selling in U.S. Treasuries as investors hedged positions and sought to participate in the large corporate debt issuance. Analysts noted that heightened uncertainty in equity markets is driving institutional investors toward substantial bond offerings like Meta’s.
The bond details were first reported by IFR and Bloomberg on Thursday. Meta’s fundraising underscores the scale of financial and strategic commitments required to lead the AI arms race in tech.
