A flood of funds is chasing Meta’s latest debt raise, as investors rush to fund the company’s next phase of AI spending.
The social media giant plans to raise $25 billion in its biggest bond sale to date in an effort to fund its ambitious AI infrastructure buildout, Bloomberg reports.
People familiar with the matter say the blockbuster bond deal is massively oversubscribed as investors piled in orders to the tune of $125 billion. Meta says proceeds from the sale will be allocated to general corporate purposes.
The bond deal draws the attention of ratings agency Moody’s, which assigned an Aa3 rating to Meta’s proposed notes. Moody’s underscores the company’s financial strength despite heavy AI-related investment needs.
“The Aa3 rating reflects Meta’s leading market position in non-search digital advertising with a global base of around 3.54 billion daily active people.”
An Aa3 rating signifies a high-quality long-term debt obligation with a very low credit risk, and it is the fourth-highest in Moody’s long-term debt rating scale.
In its outlook, the ratings firm highlights Meta’s “exceptionally strong liquidity,” noting that its cash holdings and expected free cash flow are buffers against the massive capital requirements of the AI race.
“This is supported by (i) around $44 billion of cash, marketable securities and short-term investments (at September 30, 2025), and (ii) our expectation for around $30 billion in free cash flow in 2025.”
In its latest earnings call, Meta said it is hiking its 2025 capital expenditure (CapEx) to $70 to $72 billion from $66 to $72 billion amid its AI push.
Despite the oversubscribed bond offering, Meta plunged over 11% on Thursday, ending the trading day at $666.47.
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