Meta's $27.3B AI data center bond hits record low as Meta stock rallies 9%

Meta's AI data center bond falls to 94.4 cents

A $27.3 billion bond that financed Meta's Hyperion AI data center fell to a record low of 94.4 cents on the dollar, its weakest level since the deal priced at par last October, according to Protos.

The drop came on the same day Meta's stock had its largest intraday rally in a year, rising 9%. The Nasdaq composite closed at an all-time high on Tuesday during an AI-led rally, Protos reported.

A bond priced at "par" is worth 100 cents on the dollar, the amount the borrower promises to repay. Trading below that level means buyers are paying less than face value for the debt.

Key numbers from the record offering

• $27.3 billion: the size of the bond series financing Meta's Hyperion AI data center.
• Protos describes it as the largest private debt offering ever sold.
• The notes carried a 6.581% coupon, meaning the yearly interest paid, and a 2049 maturity.
• Soon after pricing, the bond traded as high as 110 cents. By late July it had fallen to about 96 cents.
• Latest pricing was shown between 94.61 and 94.4 cents, Protos said.

What S&P said when it rated the bond

The debt sits on the books of Beignet Investor LLC, a special-purpose vehicle — a company created to hold this specific borrowing — rather than directly at Meta.

In October 2025, S&P rated Beignet Investor LLC's AI bond A+, within one rating level of Meta's regular corporate bonds, which are backed by Facebook, Instagram, WhatsApp and other parts of the company, according to Protos.

PIMCO and BlackRock bought large positions

PIMCO, described by Protos as the world's largest bond manager, anchored the deal with about $18 billion. Funds run by BlackRock, the world's largest asset manager, bought more than $3 billion.

Protos said PIMCO's own GIS funds now mark the bond at 94.5, even though PIMCO anchored the original sale. An $18 billion position bought at par would show a paper loss of roughly $1 billion at current levels.

Meta's Muse launch drew a different response

On September 8, Meta launched Muse, a personal AI agent offered in free, $20 and $100 tiers. Protos reported that Muse quickly topped Apple's US App Store chart.

Goldman Sachs spent the day listing businesses the agent might disrupt. Stocks in its so-called "consumer inertia" basket, including AT&T, Allstate, Netflix and Booking.com, fell 2.6% that day — the basket's worst day since February.

Signs of caution across AI credit

Protos reported in July that credit default swaps on large AI companies were widening. Credit default swaps are contracts that pay out if a borrower fails to repay, so a wider spread suggests investors see more risk.

Moody's warned that heavy spending on AI infrastructure could weaken the credit quality of even the largest AI companies. As the Nasdaq hit a record, Protos said unease was rising in the credit market for the industry.

What is still unclear

The source does not explain why the bond fell while the stock rose, saying only that the loss coincided with the rally. No comment from Meta, PIMCO or BlackRock is included.

The source also gives two different figures for the decline: its subheading says the bond is down 11.7% from its peak, while the article text says it has retraced 14% of its peak gain.

Why the divide between stocks and bonds matters

Stock investors and bond investors reacted in opposite directions to Meta's AI business on the same day. The bond behind one of the largest AI financing deals ever is now trading below the price it was sold at, while Meta's shares and its new AI product were met with optimism.

Protos noted that the losses for bond investors contrast with Meta's otherwise positive developments and stock performance. It also pointed to warnings that the AI spending boom could affect the credit quality of large AI companies.

Sources

• Protos

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