Meta Platforms raised $25 billion through six investment-grade debt sales, a day after raising its 2026 capital spending forecast by $10 billion to a new range of $125 billion to $145 billion, Bloomberg reported.
The order value was $96 billion, almost four times the offering price. However, Meta shares fell as much as 9.5% on the day as stock investors retreated from a spending trajectory that the company’s CEO failed to fully explain.
Meta is not the only one involved in this movement. Amazon raised about $54 billion in the bond market last month. Alphabet put a $32 billion price tag on dollar and euro bills in February. Oracle raised $25 billion in a sale that brought in a record $129 billion in orders.
Together, the four largest hyperscalers are expected to spend up to $725 billion on AI infrastructure this year. The bond market has absorbed about $300 billion in AI-related issuance so far, but conditions are changing.
Meta’s pricing on Thursday was above the risk premium in October trading, suggesting bond buyers are starting to charge more for the uncertainty involved in these bets.
The company also raised approximately $30 billion through off-balance sheet financing related to special purpose vehicles associated with Blue Owl Capital. Combined, the two mechanisms account for more than $55 billion in new funding related to Meta’s AI builds in the past six months alone.
Inside the meta, an acceleration in spending is combined with cuts in other areas. The Metaverse division downsized after burning through billions of dollars with limited commercial profits. Preparations are underway to reduce the number of employees by more than 20%, with the first round of about half of that reduction scheduled for May 20th.
