IT News Correspondent
By Juliet Orbo
In a bold move signaling its unrelenting drive to dominate artificial intelligence, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has raised $30 billion through a massive bond sale—one of the largest corporate debt offerings in recent years. The funds are aimed at accelerating Meta’s AI infrastructure and research, even as investor anxiety grows over the company’s soaring expenses.
Despite its already enormous cash reserves, Meta opted to turn to debt markets, reflecting a broader trend among tech giants who are seeking new ways to bankroll the costly race for AI supremacy. According to reports, investor demand for Meta’s bonds was four times higher than supply, highlighting the market’s strong confidence in the social media titan’s financial stability and long-term profitability.
The bonds, which will mature over several decades, are expected to fund Meta’s ambitious expansion of AI-powered data centers, advanced computing infrastructure, and next-generation AI models. Analysts say CEO Mark Zuckerberg’s aggressive spending strategy shows no signs of slowing down.
“Zuckerberg seems like he’s got no limit in terms of his spending,” said CFRA Research analyst Angelo Zino, noting that Meta generates over $100 billion in annual revenue. “While investors may worry about the scale of spending, there’s very little concern about the company’s ability to repay its debts.”
However, Wall Street reacted coolly to Meta’s latest quarterly earnings report, sending the company’s share price down by over 11% in Thursday’s trading session. The drop was largely attributed to shareholder concerns that Meta’s heavy focus on AI could squeeze short-term profits.
Still, the bond market showed unwavering enthusiasm. Byron Anderson, head of fixed income at Laffer Tengler Investments, remarked that the company’s strong financials outweighed any fears of an “AI bubble.”
“The revenue and profit coming off that company are massive,” Anderson said. “Investors want strong, reliable names in their portfolios—and Meta definitely qualifies.”
Even with a one-time charge linked to former U.S. President Donald Trump’s “Big Beautiful Bill,” Meta reported $18.6 billion in quarterly net income—a figure surpassing the combined profits of General Motors, Netflix, Walmart, and Visa during the same period.
A New Era of Corporate Borrowing
Meta’s decision mirrors similar moves by other tech heavyweights. Oracle recently raised $18 billion through a bond sale and is reportedly seeking another $38 billion in debt financing. Industry observers expect Google and Microsoft to follow suit as the AI arms race intensifies.
The borrowed funds are typically backed by tangible assets, such as data centers and high-value graphics processing units (GPUs)—the essential hardware powering AI innovation. With such strong collateral and consistent cash flows, analysts see minimal risk in lending to companies like Meta.
The U.S. Federal Reserve’s recent rate cuts have also made borrowing more attractive, spurring a surge in corporate debt activity across Silicon Valley.
Not for Everyone
However, this borrowing spree is not an option for AI startups like OpenAI, Anthropic, or Perplexity, which remain unprofitable. These younger companies continue to rely on equity funding from major investors rather than debt financing.
“If a company isn’t making profits and it issues debt, that’s a risky proposition,” Anderson warned. “Startups would find the debt market far too expensive—they’d face steep interest rates compared to giants like Meta.”
Just days before the bond sale, Meta unveiled a joint venture with Blue Owl Capital to raise another $27 billion for new data center construction—further evidence of its determination to stay ahead in the AI race.
As Meta doubles down on its AI ambitions, the company appears confident that its long-term vision will outweigh short-term investor skepticism. Whether this massive debt gamble pays off could define not only Meta’s future—but the next chapter of the AI revolution itself.
