Shares of Meta Platforms, Inc. (META) rose 2.7% on Tuesday as the company went to the bond market with a debt sale targeting $20 billion to $25 billion. The stock added another 1.46%, or $9.07, in after-hours trading.

A Rebound After a Rough Stretch

Tuesday's gains followed a difficult stretch for the shares. META had fallen in 12 of its previous 14 trading sessions, and October marked its worst month in four years. The bounce came with a big funding push attached, as the company looked to raise tens of billions of dollars to bankroll its artificial intelligence ambitions.

How the Bond Deal Came Together

Meta is seeking $20 billion to $25 billion in the offering, according to people familiar with the matter, who asked not to be named because the details are private. Two-thirds of the deal is expected to be issued in U.S. dollars, with the remaining third in euros. Final pricing was expected Tuesday afternoon.

Bloomberg News first reported the plans. Meta declined to comment.

The proceeds are intended to support spending on AI infrastructure, models and services. Later on Tuesday, Reuters reported that Meta said it is raising $15 billion through a five-part U.S. dollar bond offering, as the company turns to debt markets to help finance its accelerating AI infrastructure investments. The $15 billion figure sat below the initially reported $20 billion to $25 billion target, leaving the final size and structure of the offering to be confirmed once pricing concluded.

The Spending Behind the Debt

In its third-quarter report last month, Meta put full-year capital expenditures at $135 billion to $145 billion, lifting the low end of its earlier guidance by $5 billion. Free cash flow came in at negative $2.12 billion for the quarter, and Alphabet and Amazon also reported negative figures, a pattern that shows AI infrastructure spending outpacing cash generation across some of the largest U.S. technology companies this quarter.

The heavy outlays have drawn attention from credit rating agencies. On Friday, S&P Global Ratings changed its outlook on Meta from AA- stable to AA- negative, pointing to "uncertainty" around the high capital spending and negative free cash flow. The rating itself stayed at AA-; only the outlook changed. In rating-agency practice, an outlook revision signals where a rating could head over time without changing the current grade, keeping Meta's credit standing in focus as its spending plans unfold.

A Broader Funding Plan

Debt is not the only piece of Meta's strategy. Last week, the company said it intends to raise $95 billion for its AI work. The first $35 billion would come from underwritten public equity offerings, with another $60 billion to be raised through an at-the-market program.

Meta has been here before this year: it raised $25 billion in an April bond sale.

Add it all up, and Meta now has $25 billion from April, a new bond deal pricing this week, and a $95 billion fundraising plan on the table as it works to fund its accelerating AI buildout. The combined efforts span debt markets, underwritten public equity offerings and an at-the-market program. With quarterly free cash flow negative, the AI buildout is being financed through raised capital rather than cash left over after operations, and Meta's progress against its $135 billion to $145 billion capex guidance in upcoming quarterly reports will show how closely spending tracks that plan.