US Stock Market: Meta raises $25 billion via bond sale to fund AI expansion

Meta Platforms has raised $25 billion through a multi-tranche investment-grade bond sale, marking one of its largest debt issuances to date as the company accelerates spending on artificial intelligence infrastructure, according to a regulatory filing cited by Reuters.

The bond offering, split into six portions, comes amid a broader shift among major technology firms toward debt financing to support capital-intensive AI expansion. This follows Meta’s $30 billion bond sale last year, its biggest ever, underscoring a growing reliance on external funding after years of self-financed growth driven by strong cash flows.

The fundraising move closely follows Meta’s decision to significantly increase its capital expenditure outlook for 2026. The company has raised its projected spending by $10 billion, bringing the total expected range to between $125 billion and $145 billion. Across the sector, Big Tech companies are collectively expected to invest more than $700 billion in AI infrastructure this year, highlighting the scale of the ongoing technological arms race.

However, Reuters reported that the surge in borrowing to fund AI initiatives has raised concerns among analysts and industry experts. Some have flagged the emergence of complex and circular financial arrangements within the AI ecosystem, which could pose risks if funding conditions tighten or returns take longer than expected to materialize.

The capital-raising plans were initially reported by Bloomberg News earlier in the day.

Credit rating agency S&P Global has assigned an investment-grade rating to Meta’s new debt and maintained a stable outlook on the company. Reuters cited S&P analysts as saying that Meta’s leverage is expected to remain comfortably below downgrade thresholds for at least the next two years. Nevertheless, the agency indicated that the company’s aggressive investment in AI is beginning to weigh on its credit metrics.
To support its increased spending, Meta has also been reassessing its cost structure. Reuters previously reported that the company is scaling back its loss-making metaverse division as part of a broader effort to reallocate resources toward AI. In addition, Meta is planning significant workforce reductions, with layoffs expected to impact 20% or more of its employees. The first round of cuts, affecting roughly half of that total, is scheduled to begin on May 20.