Meta is seeking to raise between $20 billion and $25 billion in a bond sale on Tuesday, ramping up spending on artificial intelligence infrastructure, according to people familiar with the matter. The debt sale is expected to be two-thirds in US dollars and one-third in euros, with final pricing expected Tuesday afternoon. The move comes days after S&P Global Ratings revised Meta’s credit outlook from AA- stable to AA- negative, citing “uncertainty” about the company’s heavy capital spending and negative free cash flow. Meta’s stock rose 2.7% on Tuesday after falling in 12 of the prior 14 trading sessions.
Meta declined to comment on the bond sale. Bloomberg News first reported the plan.
The company’s third-quarter earnings report last month revealed that full-year capital expenditure will be between $135 billion and $145 billion, a $5 billion increase to the low end of its previous guidance. Meta posted negative free cash flow of $2.12 billion for the quarter, joining Alphabet and Amazon in reporting a negative figure.
Meta previously raised $25 billion in an April bond sale. Last week, the company outlined plans to raise $95 billion in total to fund its AI initiatives, beginning with $35 billion through underwritten public equity offerings and an additional $60 billion through an at-the-market program.
Meta’s stock had dropped in 12 of the previous 14 trading sessions and closed October with its worst month in four years before Tuesday’s 2.7% gain.
Analysis
Why This Matters
- Meta's capital spending highlights the scale of the AI arms race among Big Tech companies.
- Raising debt for AI investment increases financial risk if returns fail to materialise.
- Investors will scrutinise the company's free cash flow and borrowing costs in coming quarters.
Background
Meta raised $25 billion in bonds in April 2026. Last week it announced a plan to raise $95 billion for AI, comprising equity and debt programs. The company raised its full-year capex guidance by $5 billion to at least $135 billion after reporting negative free cash flow.
Key Perspectives
What to Watch
- Final pricing of the bond sale and market appetite for the two-currency tranches.
- Whether Meta's stock can sustain its recovery after a prolonged slump.
- The next quarterly earnings report, particularly free cash flow and capex updates.
- Execution of the $95 billion capital plan and its effect on Meta's debt burden.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedMeta is seeking to raise between $20 billion and $25 billion in a bond sale on Tuesday.US Top News and Analysis: “Meta is seeking to raise between $20 billion and $25 billion in a bond sale on Tuesday”
- SupportedMeta is ramping up spending on AI infrastructure alongside the bond sale.US Top News and Analysis: “as the company ramps up its spending on artificial intelligence infrastructure along with AI models and services.”
- SupportedThe bond sale is expected to be two-thirds in US dollars and one-third in euros.US Top News and Analysis: “The debt sale is expected to be two-thirds in U.S. dollars and one-third in euros”
- SupportedFinal pricing for the bond sale is expected Tuesday afternoon.US Top News and Analysis: “Final pricing for the bond sale should come Tuesday afternoon, the sources said.”
- SupportedS&P Global Ratings revised Meta’s outlook from AA- stable to AA- negative.US Top News and Analysis: “S&P Global Ratings revised the company's outlook from AA- stable to AA- negative”
- SupportedS&P cited “uncertainty” about Meta’s capex spending and negative free cash flow.US Top News and Analysis: “citing "uncertainty" about its hefty capex spending and negative free cash flow.”
- SupportedMeta’s stock rose 2.7% on Tuesday after falling in 12 of the prior 14 trading sessions.US Top News and Analysis: “Meta's stock rose 2.7% on Tuesday after dropping in 12 of the prior 14 trading sessions”
- SupportedMeta’s third-quarter earnings report said full-year capital expenditure would be between $135 billion and $145 billion, a $5 billion increase to the low end of previous guidance.US Top News and Analysis: “its full-year capex will come in between $135 billion to $145 billion, representing a $5 billion increase to the low end of its previous guidance.”
- SupportedMeta posted negative free cash flow of $2.12 billion for the quarter.US Top News and Analysis: “Meta posted negative free cash flow of $2.12 billion for its latest quarter”
- SupportedMeta previously raised $25 billion in an April bond sale.US Top News and Analysis: “Meta previously raised $25 billion in an April bond sale”
- SupportedLast week, Meta said it planned to raise $95 billion for its AI initiatives: $35 billion through underwritten public equity offerings and another $60 billion through an at-the-market program.US Top News and Analysis: “Meta previously raised $25 billion in an April bond sale, and said last week that it plans to raise $95 billion in an effort to fund its AI initiatives. Of that, Meta intends to first raise $35 billion in underwritten public equity offerings, and an additional $60 billion through an at-the-market program.”
- SupportedMeta’s stock closed October with its worst month in four years.US Top News and Analysis: “closing out October with its worst month in four years.”
