(Bloomberg) — Meta Platforms Inc. is looking to sell between $20 billion and $25 billion of investment-grade bonds, according to people with knowledge of the transaction, as the Facebook parent boosts spending on infrastructure for the artificial intelligence boom.
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The company is selling the debt in as many as six parts, said one of the people, asking not to be identified because they aren’t authorized to speak on the matter. Initial price discussions for the longest portion of the deal — a note maturing in 2066 — are for a yield of as much as 1.8 percentage point more than Treasuries, one of the people added, asking not to be identified.
Citigroup Inc. and Morgan Stanley are managing the bond offering. Citi didn’t immediately respond to a request for comment. Meta and Morgan Stanley declined to comment.
The debt sale comes a day after Meta posted better-than-expected revenue for the first quarter and raised projected 2026 capital expenditures to $125 billion to $145 billion. Other hyperscalers also posted results on Wednesday, and the four biggest firms are now planning to spend as much as $725 billion this year.
Big tech companies are competing for dominance in artificial intelligence, borrowing to build data centers and other infrastructure. Some investors fear the investments won’t pay off. Investors have readily absorbed the supply of bonds from these companies — even during bouts of volatility tied to the conflict in Iran — underscoring relentless demand for exposure to the artificial intelligence boom.
“Post-earnings hyperscaler supply was highly anticipated by the market,” said Tony Trzcinka, a portfolio manager at Impax Asset Management. “I expect demand to hold with the caveat that the market is demanding concessions.”
Meta is tapping the investment-grade bond market only six months after raising $30 billion in one of the market’s biggest-ever corporate debt deals. Amazon.com Inc. borrowed almost $54 billion in the US and European high-grade bond markets last month. In February, Alphabet Inc. priced about $32 billion in dollar and euro notes while Oracle Corp. raised $25 billion from a bond sale that attracted a record $129 billion of orders at its peak.
Borrowing appears to be getting more expensive for hyperscalers. The longest part of Meta’s October offering, notes maturing in November 2065, were initially discussed as yielding around 1.4 percentage point more than Treasuries. Initial talk on Thursday’s deal is about 0.4 percentage point higher.
