Meta Raises $30 Billion in Largest-Ever Bond Sale to Fund AI Growth

This is Meta’s first time returning to the bond market since it raised $10 billion in an offering in 2022. The company earlier announced a $10 billion bond sale. It was aimed at funding the buyback of shares and investing in new projects, including its metaverse project.

Meta Platforms, the parent company of Facebook, announced on Thursday that it plans to raise up to $30 billion through its largest-ever bond sale.

The major tech companies are racing to find capital to invest heavily in expanding artificial intelligence infrastructure. A bond sale refers to a form of borrowing money from investors, which the company will repay with interest over time.

The company is currently facing significant costs due to heavy investments in AI. So it indicated that its capital expenditures for 2026 will be “notably larger” compared to 2025.

Following the announcement, the company’s share price dropped by more than 11% on Thursday. Especially after it reported that the costs have increased by 32%, which was still a loss since there was only a 26% increase in revenue, raising concerns among investors.

To raise the capital, they are conducting a six-part bond sale, offering bonds with maturities ranging from five to 40 years. This is Meta‘s first time returning to the bond market since it raised $10 billion in an offering in 2022.

The company earlier announced a $10 billion bond sale. It was aimed at funding the buyback of shares and investing in new projects, including its metaverse project. Unlike other big tech companies, Meta, which also owns Instagram and WhatsApp, historically had no debt. But after this new offering, it will create a traditional balance sheet that includes both assets and debt.

Other tech giants, including Apple and Intel, have also recently issued bonds, raising $5.5 billion and $6 billion, respectively. According to sources, there was a strong investor interest in Meta’s bond sale. Investors wanted to buy more than $30 billion in orders, particularly for longer-term bonds.

By taking on debt, the company wanted to gain more financial flexibility. So that they can fund big projects like the metaverse and the Reels video platform. This is especially crucial as Meta’s own cash reserve was shrinking. Ultimately, the corporate bond market has become attractive again after facing a period of instability caused by uncertainty around interest rates. Now, with this improvement, Meta will have an opportunity to access funding. Investors have returned to the bond market, hoping that the Federal Reserve’s efforts to fight inflation are starting to work.

The bond offerings are managed by the major financial companies such as Morgan Stanley, Allen & Company, and Blaylock Van, among the co-managers. They are offering a bond offering with a range from $4 billion to $6.5 billion. Last week, Meta also secured a $27 billion financing deal with Blue Owl Capital to fund its largest data center project, “Hyperion,” in Louisiana.

According to Morgan Stanley, the world’s largest tech companies, such as Alphabet, Amazon, Meta, Microsoft, and CoreWeave, are expected to spend $400 billion on AI infrastructure this year to upgrade their existing systems.

Meta is also heavily investing in recruiting and retaining top AI talent, since there is an intense competition among tech companies to keep their top experts.

CEO Mark Zuckerberg has personally led the hiring aggressively for the newly restructured AI team, Superintelligence Labs. According to CFO Susan Li, paying compensation for these employees will be the second-largest factor driving up costs next year.

Meta has increased the minimum expected capital expenditure to $70–72 billion for this year, up from its previous forecast of $66–72 billion. There were also reports that Meta’s bond offering increased incentives to sell US Treasury bonds, as investors wanted to adjust their portfolio due to growing demand for large new corporate bond issues and ongoing uncertainty in the stock market.