Meta (META.US) seeks $25 billion in bond financing to prepare for the AI arms race and arm itself with "ammunition".

According to sources, Meta Platforms (META.US) plans to raise at least $25 billion through a bond issuance. Against the backdrop of significant increases in spending in the field of artificial intelligence (AI), the company is using this to supplement its cash reserves. Sources said that Meta has launched a promotion for the issuance of US dollar bonds, which may be divided into up to 6 tranches with maturities ranging from 5 to 40 years. The source further noted that the preliminary pricing for the 40-year tranche is at a spread of about 1.4 percentage points above the yield on comparable US Treasury bonds. The proceeds from this fundraising will be used for general corporate purposes. Citigroup and Morgan Stanley are handling the underwriting for this bond issuance. Neither the banks nor Meta have responded immediately to requests for comment.