Meta Targets Over $25 Billion in a Massive Bond Offering

Meta Platforms Inc. is preparing to issue at least $25 billion in investment-grade bonds on Thursday, just one day after CEO Mark Zuckerberg announced that the company plans to ramp up spending on artificial intelligence next year.

‍

This deal is set to be one of the largest U.S. corporate bond offerings of 2025. It follows closely on the heels of a massive $27 billion private bond sale tied to a Meta data center project in Louisiana a deal largely backed by Pacific Investment Management Co.

‍

The move underscores a much larger wave of AI-driven infrastructure investment across the tech sector. Morgan Stanley estimates that hyperscale technology firms could spend as much as $3 trillion building data centers by the end of 2028, with about half of that funded directly through company cash flows. The other half, according to Andrew Sheets, Morgan Stanley’s global head of corporate credit research, will likely be financed through debt markets.

‍

“Most of this AI-related capital spending still lies ahead,” Sheets told Bloomberg in an interview Thursday. “We’re just at the early stages of this ramp-up, and it’s a theme that’s going to stick around for years.”

‍

Tech giants are taking advantage of a favorable borrowing environment as the Federal Reserve’s rate cuts drive down financing costs. At the same time, investors eager to capture higher yields are fueling strong demand for corporate debt.

‍

Meta, meanwhile, is doubling down on artificial intelligence integration across its major platforms, including Facebook and Instagram. The company announced Wednesday that it plans to spend up to $72 billion in capital expenditures this year, with investment growth expected to accelerate even faster in 2026. Despite that ambitious spending plan, Meta’s shares dropped as much as 14% on Thursday.

‍

The bond sale is part of a broader financing boom among large technology companies. Oracle Corp., for example, raised $18 billion last month in a blockbuster high-grade bond offering. In addition, banks are gearing up for a $38 billion debt sale to support Oracle-related AI data centers a deal Bloomberg described as potentially the largest of its kind. Earlier this month, Blue Owl Capital Inc. took an 80% stake in the $27 billion Louisiana data center project tied to Meta.

‍

“Credit spreads are historically tight right now, so it’s not a bad moment for these companies to borrow,” said Scott Kimball, chief investment officer at Loop Capital Asset Management. “Investors need to look beyond the massive cash balances and strong equity cushions and focus on which firms can actually turn these AI investments into long-term success.”

‍

According to sources familiar with the deal, Meta’s bond sale could include as many as six tranches, with maturities ranging from five to 40 years. Early price discussions indicate the 40-year notes may yield around 1.4 percentage points above comparable U.S. Treasuries.

‍

The company’s funding strategy mirrors the aggressive capital spending of its biggest tech rivals Alphabet Inc. and Microsoft Corp. who are also pouring billions into AI infrastructure. The goal: to stay at the forefront of a technological revolution that could reshape industries from law and finance to logistics and software. While AI promises to drive productivity, it could also disrupt traditional white-collar jobs, raising both opportunities and risks.

‍

During Meta’s earnings call on Wednesday, Zuckerberg and Chief Financial Officer Susan Li sought to reassure investors that these AI investments are already enhancing the company’s ability to deliver more personalized advertising and content. Meta’s third-quarter revenue rose 26% to $51.2 billion, a sign that its core advertising business which accounts for roughly 98% of total sales remains robust.

‍

“We want to make sure we’re not under-investing,” Zuckerberg said during the call. “Even if we end up with more computing power than we immediately need, that capacity strengthens our core operations and, like our peers, we could potentially monetize it later.”

‍

He added that front-loading spending now would give Meta a strategic edge in future AI capabilities. “I think it’s the right call to aggressively build capacity ahead of demand,” Zuckerberg said.

‍

Thursday’s debt sale is part of a busy day in the credit markets, with Meta leading a lineup of seven issuers that includes major foreign banks HSBC Holdings Plc and NatWest Markets Plc. Citigroup Inc. and Morgan Stanley are serving as joint lead managers for Meta’s offering. While Citi and Morgan Stanley declined to comment, Meta also did not respond to requests for comment.

‍

As the AI investment race accelerates, Meta’s record bond sale signals not just confidence in its future but a willingness to take bold financial steps to stay ahead in the artificial intelligence era.

‍