Meta seeks bond sale to fund AI infrastructure expansion

Highlights

Meta arranges a bond sale totaling $20 billion to $25 billion, split roughly two-thirds in U.S. dollars and one-third in euros, to fund AI infrastructure expansion.
S&P Global Ratings revises Meta’s outlook to AA- negative, citing uncertainty around heavy capital spending and negative free cash flow of $2.12 billion for the latest quarter.
Meta increases full-year capital expenditure guidance to $135 billion–$145 billion and shares rise 2.7% on Tuesday after sustained declines in previous sessions.

Funding plan and bond structure

As reported by CNBC, citing Bloomberg News, the planned debt sale is being arranged on Tuesday and is expected to total between $20 billion and $25 billion, according to people familiar with the matter. The sources say the offering should be denominated about two-thirds in U.S. dollars and one-third in euros, while Meta declines to comment.

The financing push comes as the company accelerates investment in AI-related infrastructure and in AI models and services. Meta previously raised $25 billion in an April bond sale, adding to a broader capital-raising effort tied to its AI buildout.

Last week, Meta said it plans to raise $95 billion to fund its AI initiatives. That total includes an initial $35 billion in underwritten public equity offerings and a further $60 billion through an at-the-market program.

Spending pressure and market reaction

Investor attention is also focusing on the scale of Meta's capital spending and the pressure it is placing on cash flow. Days before the planned bond sale, S&P Global Ratings revised the company's outlook to AA- negative from AA- stable, citing uncertainty around heavy capital expenditure and negative free cash flow.

In its third-quarter earnings report last month, the Facebook parent said full-year capital expenditure will reach between $135 billion and $145 billion, raising the low end of its prior guidance by $5 billion. Meta also reports negative free cash flow of $2.12 billion for the latest quarter, joining Alphabet and Amazon in posting a negative figure.

Meta shares rise 2.7% on Tuesday after the stock falls in 12 of the previous 14 trading sessions. The company closed October with its worst month in four years, underscoring how closely markets are tracking the costs of its AI expansion.

Our earlier article on the rising costs and delays in U.S. AI data center expansion highlighted how expensive funding, construction setbacks, and power constraints are starting to test the sector’s momentum. It also noted that only a portion of announced projects appear credible, while weakening investor sentiment and local grid/community limits could further slow the buildout and strain returns.

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