Meta is considering raising at least $20 billion by selling bonds in dollars and euros, according to a Bloomberg News report carried by Economic Times. It comes about a week after the US technology giant announced its largest-ever share sale, worth around $97.5 billion.
Both moves are linked to the high cost of building artificial intelligence (AI) systems. No final decision has been made on the bonds. Here is what we know, what it means and what to watch.
What happened
Bloomberg News reported on Monday, 2 November 2026, that Meta is eyeing a cross-border bond offering. Cross-border means the bonds would be sold in more than one currency. Bloomberg cited people familiar with the matter. Meta, Morgan Stanley and Citigroup did not immediately respond to requests for comment from Reuters, according to the same report.
Meta has asked Citigroup and Morgan Stanley to hold investor calls on Monday and Tuesday. Such calls let a company meet possible buyers and judge their interest before it fixes the final size and terms of a sale.
The dollar bonds would have maturities of 5 to 30 years. The euro bonds would range from around 4 years to just over 38 years. Bloomberg said the size of the offering may grow depending on investor demand.
The numbers
Meta's fund-raising now has several parts. The table below puts them side by side, using figures from the reports.
| Item | Size | Status |
|---|---|---|
| Common-stock offering | $25 billion | Priced last week |
| Mandatory convertible preferred shares | $12.5 billion | Priced last week |
| At-the-market share-sale programme | Up to $60 billion | Planned |
| Potential bond offering | At least $20 billion | No final decision |
The first three rows add up to $97.5 billion (our calculation), which matches the equity figure in the report. The bond amount is separate and would come on top.
How the share sale works
The $25 billion common-stock offering is a sale of ordinary shares to investors. The $12.5 billion of mandatory convertible preferred shares is a different kind of share. It pays investors in the meantime and must later turn into ordinary shares.
The third part is an at-the-market programme of up to $60 billion. It lets Meta sell shares from time to time at the prevailing market price. It does not need one big sale on one day.
According to the report, tech giants are increasingly using debt markets and raising equity as they spend hundreds of billions of dollars on expanding their AI infrastructure. Meta is not the only one doing this.
What S&P Global said
On a Friday, S&P Global Ratings revised its outlook on Meta Platforms to negative, Economic Times reported. S&P cited significant uncertainty around capital spending and free operating cash flow. We only have a short summary of that report, so we cannot give more detail, such as the current credit rating.
A credit rating is an agency's opinion on how safely a company can repay its debt. An outlook shows the direction the rating may take over time. A negative outlook means the rating could be lowered. It does not mean it will be.
Capital spending is money spent on things like data centres and equipment. Free operating cash flow is roughly the cash a business earns from its operations after paying for the investments it needs. When spending is high and uncertain, less cash may be left. That is the worry S&P pointed to.
Nvidia's $3 billion and the wider AI debate
A separate Economic Times report on Nvidia said the chipmaker announced a $3 billion investment in Meta's share sale. The report called it the latest addition to Nvidia's portfolio of stakes, loans and guarantees. It said Nvidia also holds stakes in AI developers including OpenAI, Anthropic and xAI.
Experts quoted in that report differ on whether this is wise. Michael Cusumano of the MIT Sloan School of Management said Nvidia is "essentially becoming a bank". Gil Luria of D.A. Davidson said the approach is unprecedented but "appears to be working".
Critics compare such deals to the dot-com era, when companies grew by investing in startups that then bought their products. Paulo Carvao of the Harvard Kennedy School said that the closer these relationships are, the harder it is to judge true sustainable demand. He also warned: "If AI demand disappoints, spending cuts could hit chipmakers, data-center builders and their financiers at once."
The report also said shares of several Nvidia-linked "neocloud" companies fell at least 30 per cent in October. These firms rent out computing power built on Nvidia chips. CoreWeave, Nebius and IREN were among them. The fall came amid worries about tighter credit for AI projects. This part of the report is about the wider AI industry, not Meta's own finances.
Why it matters to a common investor
Meta's shares trade in the United States, not on Indian exchanges. Still, deals of this size show how much money the AI race needs. They also show how big technology firms are paying for it. This is a useful theme to follow in our business coverage, because similar fund-raising can appear in other companies too.
It helps to know the difference between the two ways of raising money. Selling bonds is borrowing. The company must pay interest and return the money on the maturity date. Selling new shares brings in money that need not be repaid. But it can reduce each existing shareholder's slice of the company. This is called dilution.
Neither route is good or bad on its own. What matters is whether the money earns enough returns later. The reports we reviewed do not give Meta's profit or spending plans, so we cannot judge that here.
Risks to keep in mind
- Plans can change. Bloomberg said no final decision has been made. The size, timing and terms may differ from the early report.
- Heavy funding needs. Meta is raising money through shares and, possibly, bonds at the same time. S&P's negative outlook shows that at least one rating agency sees uncertainty in the company's spending and cash flow.
- AI demand may disappoint. Carvao warned that weaker AI demand could hurt many linked businesses together.
- Credit may tighten. The fall in neocloud shares in October came amid worries about tighter credit for AI projects, according to the report.
- Views differ. Experts quoted by Economic Times are split on whether the AI financing web is smart strategy or bubble risk. We cannot say who is right.
What to watch next
- Whether Meta confirms the bond sale and its final size.
- The outcome of the investor calls, which were set for Monday and Tuesday.
- How much of the up-to-$60-billion at-the-market programme is used over time.
- Any further steps by rating agencies after S&P's negative outlook.
- Whether credit conditions for AI projects ease or tighten further.
For daily updates on global and Indian trends, see our markets section.
Words explained
- Bond: A loan that investors give to a company. The company pays interest and returns the money on a fixed date.
- Maturity: The date on which a bond must be repaid. A 30-year bond is repaid after 30 years.
- Common stock: Ordinary shares of a company that give the holder part ownership.
- Mandatory convertible preferred shares: Shares that pay investors for a while and must later be turned into ordinary shares.
- At-the-market programme: A plan that lets a company sell new shares bit by bit at the current market price.
- Outlook: A rating agency's view on where a company's credit rating may go. Negative means it could be lowered.
- Capital spending: Money spent on long-lasting assets such as data centres and equipment.
- Free operating cash flow: Roughly, the cash left from running the business after the investments it needs.
- Dilution: The fall in each shareholder's ownership share when a company issues new shares.
Sources: Economic Times (citing Bloomberg News and Reuters).
This article is for information and education only. It is not investment advice. MarketUpDown is not registered with SEBI as an investment adviser or research analyst. Read our disclaimer.