Meta Taps Bond Market for Up to $25B as AI Bills Pile Up

Meta hit the bond market Tuesday, looking to borrow between $20 billion and $25 billion, according to CNBC. The social media giant is loading up on cash to feed its artificial intelligence buildout — data centers, models and services that keep getting pricier.

People familiar with the matter told CNBC the sale will be roughly two-thirds in U.S. dollars and one-third in euros, with final pricing expected Tuesday afternoon. Meta declined to comment. Bloomberg News was first to report the plans.

The timing isn't random. S&P Global Ratings just shifted Meta's outlook from AA- stable to AA- negative, flagging uncertainty over its heavy capital spending and negative free cash flow. On Meta's third-quarter earnings call last month, the company said full-year capex will land between $135 billion and $145 billion — the low end of that range climbed by $5 billion from prior guidance. Meta also posted negative free cash flow of $2.12 billion for the quarter, a club that now includes Alphabet and Amazon.

This is Meta's second big dip into debt this year. The company raised $25 billion in an April bond sale, and last week said it wants to raise $95 billion overall to fund AI — starting with $35 billion in underwritten public equity offerings, plus $60 billion through an at-the-market program.

Investors gave a small cheer Tuesday: Meta shares rose 2.7%. That's a bounce after a rough stretch, with the stock falling in 12 of the prior 14 trading sessions and wrapping October with its worst month in four years.

Now Wall Street waits for the pricing print. If the deal lands at the high end, it's another $25 billion bet that Zuckerberg's AI spending spree pays off before the balance sheet starts to complain.