Meta seeks to raise up to $25 billion in debt sale as AI spending jumps

Meta is seeking to raise between $20 billion and $25 billion in a bond sale on Tuesday as the company ramps up its spending on artificial intelligence infrastructure along with AI models and services.

The debt sale is expected to be two-thirds in U.S. dollars and one-third in euros, according to people familiar with the matter who asked not to be named because the details are private. Final pricing for the bond sale should come Tuesday afternoon, the sources said.

Meta declined to comment. Bloomberg News first reported on Meta's plans.

Meta's bond sale comes days after S&P Global Ratings revised the company's outlook from AA- stable to AA- negative, citing "uncertainty" about its hefty capex spending and negative free cash flow.

In its third-quarter earnings report last month, the Facebook parent revealed that 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. Meta posted negative free cash flow of $2.12 billion for its latest quarter, joining Alphabet and Amazon in reporting a negative figure.

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.

Meta's stock rose 2.7% on Tuesday after dropping in 12 of the prior 14 trading sessions and closing out October with its worst month in four years.