Meta Platforms Inc. has completed one of the largest corporate bond offerings in U.S. history, raising $30 billion as part of its aggressive investment strategy in artificial intelligence. The sale, which initially targeted at least $25 billion, drew unprecedented investor interest, with orders peaking at $125 billion, surpassing previous records set by CVS Health in 2018.
According to Bloomberg, the offering was split into multiple tranches with maturities ranging from five to 40 years. Yields were priced competitively, reflecting strong demand amid falling borrowing costs and the Federal Reserve’s recent rate cuts. Proceeds will be used for general corporate purposes, including significant capital expenditures on AI infrastructure.
Meta’s CEO Mark Zuckerberg signaled earlier last week that the company will accelerate spending on AI, projecting up to $72 billion in capital expenditure for 2025, with even faster growth expected in 2026. These investments aim to enhance AI capabilities across Meta’s core platforms, including Facebook and Instagram, and support large-scale data center projects.
The bond sale underscores a broader trend among tech giants, which are turning to credit markets to finance massive AI-related projects. Analysts estimate hyperscalers could spend $3 trillion on infrastructure by 2028, with debt playing a key role in funding.
Despite the successful raise, Meta’s shares fell 11% on Thursday, closing at US$668.16, as investors weigh the long-term costs of its AI ambitions against near-term profitability.
