Meta's $27.3 Billion AI Data Center Bonds Fall to Record Lows, Contrasting With Soaring Stock Price
Meta's $27.3 billion bond series, issued for its Hyperion AI data centers, fell to 94.4 cents on Tuesday, marking its lowest level since its issuance last October. Meanwhile, Meta's stock recorded its largest intraday gain in a year, rising 9%. The bond series is the largest private debt issuance in history, subscribed by institutions such as BlackRock and PIMCO. Despite S&P assigning an A+ rating to the bonds in October 2025, credit market investors value them below 95 cents. PIMCO, which initially anchored the deal with $18 billion, has now faced approximately $1 billion in paper losses. The bond's decline stands in stark contrast to the Nasdaq index reaching an all-time high amid the AI boom and Meta's successful launch of its personal AI agent, Muse.
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