Meta plans to raise $20 billion through a bond offering to fund AI development

Meta Platforms is issuing bonds for the first time since spring to finance investments in artificial intelligence infrastructure, despite investor skepticism about the industry’s debt burden, Bloomberg reports, citing sources.

According to them, the total amount of the offering will be at least $20 billion, of which Meta expects to raise about $15 billion through dollar-denominated bonds. The company is also preparing its first-ever bond issue in euros, the sources said.

The offering consists of five tranches of dollar-denominated bonds with maturities ranging from five to 30 years. According to preliminary estimates, the yield on the longest-maturity issue could exceed the yield on U.S. Treasury bonds by approximately 2.5 percentage points, sources said.

Meta Platforms shares rose 2.5% during trading on November 3. Year-to-date, they are down 7%.

Meta last tapped the debt market in April, when the company sold $25 billion in investment-grade bonds amid investor demand of nearly $100 billion. Meta is following a general trend among major tech companies that are actively raising funds to finance data centers and chips: On November 2, Oracle sold $10 billion in bonds, and Google’s parent company, Alphabet, raised €6 billion ($6.7 billion) on November 2 through a placement of euro-denominated notes. Last week, Microsoft completed a $25 billion transaction.

According to JPMorgan's forecast, the rapid growth in tech companies’ capital expenditures on artificial intelligence, coupled with the refinancing of existing debt and a resurgence in merger activity, could push the volume of issuances in the U.S. high-grade bond market to a record$1.81 trillion. According to the bank’s estimates, technology companies could raise approximately $252 billion in this market—a 61% increase from the beginning of 2025.

This article was AI-translated and verified by a human editor