Meta to raise $30 billion in its biggest bond sale as AI expansion costs rack up

Core Insights - Meta is planning to raise up to $30 billion through its largest bond offering to fund significant investments in AI infrastructure, with capital expenditures expected to be "notably larger" next year than in 2025 [1][8] - The company's shares fell over 11% as a result of a 32% increase in costs that outpaced a 26% revenue increase [1][8] - Major tech companies, including Meta, are projected to spend $400 billion on AI infrastructure this year, according to Morgan Stanley [5] Capital Expenditure and Bond Sale - Meta has increased the lower end of its capital expenditure outlook for this year to between $70 billion and $72 billion, up from a prior forecast of $66 billion to $72 billion [7][8] - The bond sale will consist of six parts with maturities ranging from five to 40 years, with principal amounts ranging from $4 billion to $6.5 billion [2][8] - Co-managers for the bond sale include Morgan Stanley, Allen & Company, and Blaylock Van [2] AI Investments and Talent Acquisition - Meta recently secured a $27 billion financing deal with Blue Owl Capital, its largest private capital agreement, to support its Hyperion data center project in Louisiana [5][8] - The company is heavily investing in attracting and retaining top AI talent, with CEO Mark Zuckerberg leading an aggressive hiring spree for the newly reorganized AI unit, Superintelligence Labs [6][8] - Employee compensation costs, particularly for AI talent, are expected to be the second-largest contributor to the increase in costs next year, as stated by Meta's CFO Susan Li [6]