.png)
1 hour ago
2
Meta Platforms is preparing to raise between $20 billion and $25 billion through a bond sale, increasing spending on artificial intelligence infrastructure, Bloomberg reports.
The proposed deal follows a $30 billion bond issuance last year, the largest in the company’s history. With this new development, Meta is again turning to debt markets rather than relying only on its cash reserves.
A day earlier, Meta Platforms increased its 2026 capital spending forecast by $10 billion. It now expects to spend between $125 billion and $145 billion this year. The capital will go into data centres, custom chips, and energy systems needed to support AI tools and large-scale model training.
Across the industry, spending is increasing fast, with Big Tech companies expected to invest more than $700 billion in AI infrastructure this year.
Meta’s new bond sale is expected to include up to six tranches. One portion could mature in 2066. Early pricing discussions suggest the longest-dated notes may offer a yield of up to 1.8% points above US Treasuries, based on people familiar with the matter.
The company has not responded to requests for comment.
S&P Global has rated the planned debt as investment-grade and kept a stable outlook on the company. Its analysts said they expect Meta’s leverage to remain “well below” the downgrade threshold for at least two years.
Still, they noted that the scale of AI spending is beginning to affect the company’s credit profile.
To support this change, Meta has reduced spending on its metaverse unit, which has recorded losses for several years. At the same time, the company is preparing for job cuts.
Reports reveal plans to reduce its workforce by 20% or more, with an initial round affecting about half of that set for May 20.
Meta is not alone in raising funds this way. Other technology firms have also issued large amounts of debt this year.
Amazon raised about $54 billion across US and European markets in March, Alphabet has issued roughly $32 billion in dollar and euro-denominated notes, while Oracle completed a $25 billion bond sale that drew strong demand.
The post Meta Plans $25 Billion Bond Sale to Fund AI Spending Surge appeared first on Tech | Business | Economy.
