Meta Launches $25B Bond Sale

Meta is launching a bond sale targeting at least $25 billion to fund its artificial intelligence and data centre infrastructure. The offering includes multiple parts with maturities ranging from five to 40 years. The longest-dated notes are priced around 1.4 percentage points above comparable U.S. Treasuries.

This move follows Meta's forecast of increased capital expenditure in AI and related infrastructure. While Meta's Q3 revenue grew 26%, costs increased by 32%. The company anticipates expenses to grow significantly faster in 2026 as it expands compute capacity and hires more technical staff.

Despite solid earnings and revenue beats, Meta's stock experienced a downturn as investors reacted to increased spending plans. Concerns have been raised about the potential for an AI bubble fuelled by extravagant spending from Meta and its peers.