Meta Targets $25 Billion Bond Sale Amid Rising AI Infrastructure Costs

In Brief

• Meta to raise $25B via bond sale with maturities ranging from 5 to 40 years
• Q3 FY25 revenue jumps 26% Y/Y to $51.2B; EPS hit by $15.9B tax adjustment
• FY25 capex raised to $70–72B amid rising AI and data center investments

Meta Platforms Inc. plans to raise at least $25 billion through a multi-part dollar-bond sale, according to people familiar with the matter. The offering includes up to six tranches with maturities ranging from five to 40 years.

Initial pricing guidance for the 40-year note is set at approximately 1.4 percentage points above comparable U.S. Treasuries. Proceeds will be used for general corporate purposes as Meta continues expanding its artificial intelligence infrastructure.

Major financial institutions, including Citigroup Inc. and Morgan Stanley, are managing the bond sale. The fundraising comes amid rising capital demands linked to Meta’s ongoing investments in data centers and computing power.

Strong Q3 results support Meta’s funding plans

Meta reported third-quarter FY25 revenue of $51.2 billion, a 26% year-over-year increase and $1.8 billion above expectations. Earnings per share came in at $1.05, impacted by a $15.9 billion one-time tax adjustment.

The company reported an 8% year-over-year rise in daily active people, reaching 3.54 billion across its platforms. Ad impressions also grew by 14% during the quarter, showing continued engagement across its advertising products.

Meta raised its full-year capital expenditure guidance to between $70 billion and $72 billion, up from a previous estimate of $66 billion to $72 billion. This reflects increased investment in AI systems and infrastructure, aligning with the company’s long-term strategy.

The bond offering is expected to help support these capital needs while maintaining operational flexibility. With rising AI costs and expanding platform usage, Meta continues to position itself to meet growing global demand for its services.