Meta Secures $25B in Record-Breaking Bond Sale for AI Expansion
Meta Platforms has secured a staggering $25 billion through its largest-ever corporate bond sale. This move is set to fund an ambitious expansion into artificial intelligence infrastructure, as announced following Q3 earnings that exceeded expectations.
The parent company of Facebook reported impressive third-quarter results, with revenue soaring 26% to $51.24 billion. This growth was largely driven by the performance of AI-enhanced advertising. CEO Mark Zuckerberg defended the company’s significant AI investment, stating, “We’re seeing the returns in the core business that’s giving us a lot of confidence that we should be investing a lot more.”
Meta has revised its 2025 capital expenditure guidance to between $70-72 billion, a notable increase from previous estimates. The company’s future plans involve even greater spending in 2026. They are in the process of constructing data centers that will accommodate over 1.3 million GPUs and consume more than 2 gigawatts of power – an equivalent to two nuclear power stations.
The bond sale comes on the heels of a $27 billion private placement earlier this month for Meta’s Louisiana data center project. This aggressive expansion strategy positions Meta as a direct competitor to OpenAI’s $500 billion “Project Stargate” initiative and Microsoft’s $80 billion AI infrastructure investment.
Despite investor concerns about the massive spending – which resulted in Meta shares falling 14% after the announcement – Zuckerberg remains confident. He believes that “being able to make a significantly larger investment here is very likely to be a profitable thing over some period.”