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Meta is exploring a bond sale worth at least USD 20 billion. The company has been investing millions in artificial intelligence, and the spending has been rising continuously. According to a latest report, the company is considering a deal involving US dollar and euro bonds. It has reportedly asked Citigroup and Morgan Stanley to arrange calls with investors.
At this point, the final amount is still unclear. Moreover, this sale will mark Meta’s first major debt offering in the last six months and the first one in euros. Reportedly, the company needs more money to build AI data centers and expand its computing power. The company even announced plans to raise around USD 97.5 billion through equity offerings, including a possible USD 60 billion share sale program.
The report indicates that the dollar offering could cover maturities ranging from five to 30 years, with the euro bonds will have maturities ranging from 4 to 38 years. Notably, Meta is not the only company taking this route. AI giants like Alphabet, Amazon and Microsoft have walked through this path before.
While Alphabet has raised around EUR 6 billion through a euro bond sale, Amazon has disclosed a supplier financing plan worth up to USD 80 billion. Microsoft recently raised USD 25 billion through bonds.
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Big Tech companies are spending billions to stay ahead in AI. However, they cannot keep borrowing without thinking about the long-term cost. Higher interest payments could put pressure on their finances and delay some data center projects.
For now, the AI race shows no signs of slowing down, but companies will need to balance their spending with the returns they expect. The coming years will show whether these huge investments can pay off or leave tech firms with a heavy debt burden.