Meta Platforms has issued $25 billion in investment-grade bonds across six tranches, according to a recent regulatory filing. This massive capital raise follows last year’s record-breaking $30 billion sale as the company shifts from relying on cash flow to leveraging debt to finance its aggressive artificial intelligence expansion. The move coincides with Meta increasing its 2026 capital expenditure forecast to a range of $125 billion to $145 billion, contributing to an expected $700 billion infrastructure spend across the Big Tech sector this year.
While S&P Global assigned the new debt an investment-grade rating with a stable outlook, analysts noted that Meta’s heavy focus on AI is beginning to impact its credit metrics. To manage this financial pivot, the company is scaling back its underperforming metaverse division and preparing for significant workforce reductions. Reports indicate that Meta plans to lay off 20% or more of its staff, with an initial round of cuts scheduled to begin on May 20.
The surge in debt-funded AI development has also raised concerns among market experts regarding “circular deals” within the industry. Despite these warnings, Meta remains committed to its infrastructure goals, joining other tech giants in a high-stakes race to dominate the AI landscape through unprecedented levels of capital investment.
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