businessLIVE
Meta Seeks to Raise Up to $25 Billion in Bond Sale to Fund AI Spending
Meta is seeking to raise $20 billion to $25 billion in a bond sale to fund AI spending.
Key points
- Meta is seeking between $20 billion and $25 billion in a bond sale expected to be two-thirds in U.S. dollars and one-third in euros.
- S&P Global Ratings revised Meta's outlook to AA- negative from AA- stable, citing uncertainty about its capex and negative free cash flow.
- Meta expects full-year capex of $135 billion to $145 billion and posted negative free cash flow of $2.12 billion in its latest quarter.
Why it matters. The large debt raise shows how heavily Meta is funding its AI push, and the rating outlook change reflects concern over its spending and negative free cash flow.
Meta is seeking to raise between $20 billion and $25 billion in a bond sale on Tuesday to fund artificial intelligence infrastructure, models and services, according to people familiar with the matter. The debt is expected to be two-thirds in U.S. dollars and one-third in euros, with final pricing due Tuesday afternoon. S&P Global Ratings recently revised Meta's outlook from AA- stable to AA- negative, citing "uncertainty" about its hefty capex and negative free cash flow.
Latest updates
Meta Seeks to Raise Up to $25 Billion in Bond Sale to Fund AI Spending
Meta is seeking to raise between $20 billion and $25 billion in a bond sale scheduled for Tuesday, CNBC reported. The company is ramping up spending on infrastructure and artificial intelligence models and services. The debt sale reflects the rising capital needs of the company's AI build-out. CNBC's report did not say how the bonds would be priced or how the proceeds would be allocated across projects.