Meta to raise $30B in record bond sale amid rising AI costs

[Mobile display with logo of Facebook, WhatsApp and Instagram apps in hand against blurred META logotype on white monitor]
Kira-Yan

Facebook parent Meta Platforms (META [https://seekingalpha.com/symbol/META]) to raise money through bond offerings worth up to $30 billion, it said in a filing on Thursday, as costs from its AI expansion continue to climb.

The bond sale comes a day after Chief Executive Officer Mark Zuckerberg warned that the company would spend even more aggressively on artificial intelligence in the coming year.

It is raising the funds through a six-part bond sale with maturities ranging from five to 40 years.

Meta has flagged that its capital expenditure [https://seekingalpha.com/news/4511469-analysts-largely-impressed-with-metas-q3-but-ai-spending-plans-remind-of-metaverse-days] next year will be "notably larger" than in 2025, while investors scrutinize the pace of return on these hefty investments.

Class A shares of Meta Platforms (META [https://seekingalpha.com/symbol/META]) on Thursday slumped as much as -13.5% to $650.25, after the social media giant booked a nearly $16B one-time income tax charge in its quarterly results. At that session low, the stock had lost more than $220B in market value.

Source: Filing [https://seekingalpha.com/filing/16854147]

MORE ON META

* Meta's AI Strategy Looks Riskier Than Its Peers [https://seekingalpha.com/article/4836013-meta-stock-ai-strategy-looks-riskier-than-peers-hold-for-now]
* Meta Q3: Hefty Tax Charge, CapEx Ramp, Bargain P/E [https://seekingalpha.com/article/4835881-meta-q3-hefty-tax-charge-capex-ramp-bargain-pe]
* Meta Q3: Market Doesn't Trust Zuck [https://seekingalpha.com/article/4835816-meta-q3-market-doesnt-trust-zuck]
* Meta sheds $220B in market cap, VR unit hits $73B in cumulative losses [https://seekingalpha.com/news/4511607-meta-sheds-220b-in-market-cap-vr-unit-hits-73b-in-cumulative-losses]
* Analysts impressed with Meta's Q3, but AI spending plans remind of Metaverse days [https://seekingalpha.com/news/4511469-analysts-largely-impressed-with-metas-q3-but-ai-spending-plans-remind-of-metaverse-days]