Meta's $30B bond sale fuels AI push, data center expansion
Meta (yep, the company behind Facebook, Instagram, and WhatsApp) pulled off its biggest bond sale ever—$30 billion—to fuel a massive push into artificial intelligence and build out new data centers.
The sale, handled by Citigroup, Morgan Stanley, and other co-managers, gives Meta more runway to ramp up its AI efforts over the next few years.
Revenue boost vs. rising costs
Meta's revenue jumped 26% to $51.2 billion last quarter, but it's also planning to nearly double capital spending in 2025—up to $72 billion—to keep up with the AI race.
After news of the bond sale, shares dipped 11% as investors weighed rising costs against growth.
Data center joint venture and industry-wide AI infrastructure investment
Meta isn't going it alone: it teamed up with Blue Owl Capital for a $27 billion joint venture on a giant Louisiana data center called "Hyperion."
Tech giants like Meta are expected to drop almost $400 billion on AI infrastructure this year.
Even though the stock took a hit, Meta's strong cash flow means borrowing is cheap—and they're betting big on an AI-powered future.