Meta is raising at least $20 billion through a bond sale to fund its massive AI infrastructure spending, marking its first debt offering in six months. The sale includes US dollar and euro notes with maturities ranging from five to 30 years, managed by Citigroup and Morgan Stanley. Meta now expects capital spending of $135 billion to $145 billion in 2026, and S&P Global shifted its outlook on the company from stable to negative.
Billionaire investor Bill Ackman pushed back on concerns about hyperscaler spending, arguing that AI infrastructure companies will exceed revenue expectations. He estimated a pre-tax return on invested capital of 15% to 25% and said these firms can finance most AI investments from their own cash flows rather than relying heavily on debt.
Palantir forecast fourth quarter revenue near $2.65 billion, implying about 15% sequential growth, but that would represent the slowest growth since early 2025. The company raised its full-year revenue forecast to $8.53 billion, yet analysts flagged rising competition from frontier model providers like Anthropic and slower US commercial growth as headwinds for a stock that has gained nearly 900% over three years.
London-listed technology investment trusts fell amid a broader tech sell-off driven by doubts about whether AI spending will generate sufficient returns. The Nasdaq Composite dropped 1.07%, and concerns were amplified by Alphabet's $9.1 billion negative free cash flow and Meta's enormous planned capital expenditure. Polar Capital Technology, with roughly 43% of its portfolio in semiconductors, was particularly affected.
Cisco partnered with OpenAI to build AI-powered cyber defense capabilities, combining Cisco's network telemetry data with OpenAI's frontier models. Products including Daybreak and GPT-6 Astra aim to detect and patch vulnerabilities at machine speed, while OpenAI's zero data retention policies are meant to ease deployment concerns on critical systems.
Scotland's Innovation Minister Alyn Smith urged the country to embrace AI, saying the technology could add £23 billion to annual GDP by 2035. National guidance on AI data centres is expected by Christmas, and Smith noted that Scotland's IT sector already employs 87,000 people.
Fiserv reported a net loss of $5.94 billion for the third quarter, driven by a $6.45 billion goodwill-impairment charge, with revenue down 1% to $5.2 billion. CEO Takis Georgakopoulos said the company is using Project Elevate to embed AI into business workflows, aiming to cut costs and accelerate development, and expects Clover revenue to return to double-digit growth in the fourth quarter.
Key Takeaways
- Meta is raising at least $20 billion in bonds to fund AI infrastructure, with 2026 capital spending projected at $135 billion to $145 billion
- S&P Global changed Meta's credit outlook from stable to negative amid growing spending concerns
- Bill Ackman predicts AI hyperscalers will beat revenue estimates and earn 15% to 25% pre-tax returns on invested capital
- Palantir's projected Q4 growth of roughly 15% would be its slowest since Q2 2025, with competition from Anthropic cited as a headwind
- London tech trusts fell as Nasdaq Composite dropped 1.07% over AI spending return concerns, with Alphabet reporting $9.1 billion negative free cash flow
- Cisco partnered with OpenAI on AI-powered cyber defense, using Daybreak and GPT-6 Astra to detect and patch vulnerabilities faster
- Scotland's government believes AI could add £23 billion to annual GDP by 2035 and expects AI data centre guidance by Christmas
- Fiserv posted a $5.94 billion net loss in Q3 including a $6.45 billion goodwill-impairment charge and is using AI through Project Elevate to cut costs
- Palantir's stock has risen nearly 900% over three years, adding about $390 billion in market value despite slowing growth
- Fiserv expects Clover revenue to return to double-digit growth in Q4 as part of its recovery plan
Meta markets $20 billion in bonds to fund AI expansion
Meta is selling at least $20 billion in bonds to help pay for its AI infrastructure buildout. The notes come in five tranches with maturities from five to 30 years. Citigroup and Morgan Stanley managed the offering. Meta also raised money through stock sales recently. The company expects 2026 capital spending of $135 billion to $145 billion.
Meta starts bond sale to fund AI investments
Meta Platforms Inc. began marketing bonds for the first time in six months. The company plans to raise at least $20 billion in debt. The sale includes US dollar notes in five tranches with maturities from five to 30 years. Meta is the latest tech giant to use debt markets for AI infrastructure spending.
Meta seeks up to $25 billion in debt sale for AI spending
Meta aims to raise between $20 billion and $25 billion in a bond sale. The sale will be about two-thirds in US dollars and one-third in euros. S&P Global Ratings changed Meta's outlook from AA- stable to AA- negative. Final pricing was expected on Tuesday afternoon. Meta's stock rose 2.7% on Tuesday after a tough October.
Bill Ackman predicts AI hyperscalers will exceed revenue expectations
Billionaire investor Bill Ackman says AI hyperscalers will grow revenue beyond what analysts expect. He believes hyperscalers can fund the AI buildout and still earn strong returns. Ackman estimated a pre-tax return on invested capital of 15% to 25%. He thinks hyperscalers have very little net debt and strong cash flows.
Bill Ackman bullish on AI hyperscalers despite spending concerns
Bill Ackman says hyperscalers' revenue growth will likely beat analyst estimates over the next several years. He wrote that analyst estimates penalize hyperscalers for current buildout costs. He believes they will either grow revenue or cut capital spending. Ackman said hyperscalers can finance most AI spending from their own cash flows. He expects their free cash flow will be higher than current estimates suggest.
Study examines if LLMs can judge their own accuracy
Researchers studied whether large language models can tell correct answers from wrong ones. They introduced two new measures called PVC and C-PVC based on VC theory. The team tested 11 models with 7 to 8 billion parameters on 360 math problems and other tasks. Results showed a trade-off where models with stronger self-evaluation had weaker confidence calibration. The framework offers tools to diagnose this problem.
London tech trusts fall amid global AI stock sell-off
London-listed technology investment trusts dropped as a global sell-off in tech stocks deepened. The Nasdaq Composite fell 1.07% and the Nasdaq 100 entered correction territory. Semiconductor stocks in South Korea and Taiwan also plunged sharply. Concerns grew over whether AI spending will generate enough revenue, highlighted by Alphabet's $9.1 billion negative free cash flow and Meta's planned $135 billion to $145 billion in 2026 capital expenditure. Polar Capital Technology was especially exposed with about 43% of its portfolio in semiconductors.
Scotland minister urges embrace of AI technology
Scotland's Innovation Minister Alyn Smith said the country needs to embrace AI to unlock its potential. The government believes AI could add £23 billion to Scotland's annual GDP by 2035. National guidance on AI data centres is expected by Christmas. Smith said data centres are essential infrastructure for the AI sector. He noted Scotland's IT industry already employs 87,000 people.
Palantir growth faces investor scrutiny amid AI concerns
Palantir forecast fourth quarter revenue of about $2.65 billion, implying roughly 15% sequential growth. This would mark the slowest growth since the second quarter of 2025. The company raised its annual revenue forecast to $8.53 billion. Palantir's stock has risen nearly 900% over three years, adding about $390 billion in market value. Analysts noted rising competition from frontier model providers like Anthropic and slower U.S. commercial growth.
Cisco teams with OpenAI for AI-powered cyber defense
Cisco partnered with OpenAI to defend networks against AI-powered cyber attacks at machine speed. The approach combines Cisco's network telemetry with OpenAI's frontier AI models. Products like Daybreak and GPT-6 Astra help find and patch vulnerabilities faster. OpenAI's zero data retention and strict data privacy policies support deployment on critical systems. The collaboration aims to help security teams investigate threats and respond more quickly.
Company revenue grows 6 percent with AI tools
A company reported that its revenue growth reached 6 percent recently. Primary Research growth was in the mid-single-digit range while Decision Support performed strongly. AI-enabled products are being used more often by customers. The company continues to focus on quality, evidence transparency, and operating efficiency.
New AI handbook helps find top fund managers
A new AI handbook helps allocators identify emerging fund managers. High-profile asset owners and managers created this guide. The group includes PIF, Mubadala, and the Qatar Investment Authority. AI gives these groups an edge in spotting future star fund managers.
Fiserv uses AI and payment tech to recover
Fiserv reported a net loss of $5.94 billion for the third quarter. This loss included a goodwill-impairment charge of $6.45 billion. Revenue fell 1 percent to $5.2 billion during the period. CEO Takis Georgakopoulos said the company is seeing progress in its recovery plan. Fiserv is using Project Elevate to embed AI into its business workflows. This strategy aims to cut costs and speed up development. The company expects Clover revenue to return to double-digit growth in the fourth quarter.
Sources
- Meta is marketing at least $20 billion in bonds to fund AI build-out
- Meta Kicks Off Debt Offering in Push to Fund AI Investments
- Meta seeks to raise up to $25 billion in debt sale as AI spending jumps
- Bill Ackman says AI hyperscalers' revenue will blow past expectations
- Bill Ackman says AI hyperscalers' revenue will blow past expectations even as capex jitters rise
- Can LLMs Reliably Evaluate Themselves? A Probabilistic VC Framework
- London-listed technology trusts slide as global AI sell-off deepens
- Scotland needs to embrace AI for its potential to be realised, minister says
- Palantir’s AI-fueled growth faces a test as investors question its staying power
- How Cisco defends at machine speed with OpenAI
- REL: Revenue growth reached 6% as AI expands product value and customer adoption
- How AI can help allocators spot tomorrow’s star fund managers
- Fiserv bets on payment tech, AI to drive recovery
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