Meta Issues $25 Billion in Bonds to Fund AI Capital Spending

Meta Platforms is leaning on special-purpose vehicles to fund the vast computing capacity required for artificial intelligence while limiting direct debt on its balance sheet. The structure turns long-dated data-center leases into infrastructure assets that can be sold to bond investors. Yet the latest financing is testing appetite for Big Tech’s AI buildout as capital spending surges and investors scrutinize whether future demand and cash generation will justify increasingly large commitments.

The Financial Times reported on July 24, 2026, that BlackRock-controlled Sopaipilla Investor is preparing a $12 billion bond sale for a nearly 1-gigawatt data-center project in El Paso, Texas. The vehicle would own 80% and Meta 20%. Early discussions point to a yield above 7%, with some investors seeking about 40 basis points more than on the $27 billion Hyperion financing completed in October 2025. The transaction could launch as soon as July 27, though terms may change.

The generative AI race is driving capital spending by major technology companies to new highs. Meta Platforms plans to invest as much as $145 billion in 2026 to expand its data centers, servers and chip supplies. Raising the money through a new share issuance could ease borrowing pressure but may dilute existing shareholders’ stakes and earnings per share.

Meta is reportedly evaluating the issuance of tens of billions of dollars in new shares to supplement funding for its 2026 AI infrastructure budget, though the size and timing have yet to be finalized. The report emerged shortly after Alphabet completed about $85 billion in financing, underscoring how technology giants including Meta and Google are expanding external fundraising as they compete for AI computing capacity.

Meta is using cash flow from its advertising business to fund its generative AI push and has launched a new model, Muse Spark. But the high cost of data centers, chips and computing infrastructure has made the potential payoff from increased capital expenditure a key metric for investors assessing the company.

Meta reported a 33% year-over-year increase in revenue in its first-quarter 2026 results and raised the upper end of its full-year AI capital expenditure forecast to $145 billion. Although revenue and profit beat market expectations, the heavy spending fueled concerns about pressure on margins. The shares tumbled after the results and were down more than 8% at one point in premarket trading.