Meta Plans $25 Billion Bond Sale to Fund Soaring AI Infrastructure Costs
The social media giant has hired Citigroup and Morgan Stanley to lead the offering, which will include bonds with maturities ranging from five to forty years, according to people close to the deal. The proceeds will be used to help finance Meta’s next phase of AI development and data center construction.
Debt Market Move Amid Record AI Spending
The planned sale comes just one day after CEO Mark Zuckerberg signaled that Meta will spend even more aggressively to dominate the global race for artificial superintelligence. He defended the strategy as essential to “frontload building capacity” and secure long-term technological leadership.
Meta’s shares plunged 12% on Thursday morning — erasing roughly $240 billion in market capitalization — as investors reacted to the scale of the company’s new outlays. Despite the selloff, Meta continues to lean heavily on both private and public debt markets to fund its infrastructure expansion.
Earlier this year, the company raised $27 billion in private credit from lenders such as Pimco and Apollo Global Management to finance its massive “Hyperion” data center complex in Louisiana. The upcoming bond sale represents a major step in broadening those financing efforts.
AI Infrastructure Arms Race Intensifies
Meta’s bond sale highlights how Big Tech firms are increasingly tapping debt markets to support record-breaking investments in AI. According to industry analysts, major U.S. technology companies — including Meta, Microsoft, and Google-parent Alphabet — are expected to spend more than $400 billion on AI-related infrastructure this year alone.
Meta said its capital expenditures could reach $72 billion by the end of 2025, with spending growth “notably larger” in 2026 — likely far surpassing its earlier forecast of $105 billion. At a recent dinner with U.S. President Donald Trump, Zuckerberg reportedly said the company plans to spend $600 billion on U.S. data centers and AI infrastructure through 2028.
Analysts React to Aggressive Spending Strategy
Market strategists said the planned debt issuance underscores Meta’s commitment to scale its AI ambitions rapidly — but also highlights the growing risks of overextension. “The company is betting that its AI infrastructure will pay off before its balance sheet tightens,” said one analyst. “Investors want to see that capital discipline will follow growth.”
Meta declined to comment on the specifics of the bond sale, which was first reported by Bloomberg. Citigroup and Morgan Stanley also declined to comment.