S&P revises Meta's credit outlook to negative over AI spending and cash flow

S&P Global Ratings revised Meta Platforms' credit outlook to negative from stable, keeping its AA- rating.

S&P cited uncertainty over Meta's elevated capital spending and negative free cash flow, and questioned when Muse, Meta's AI agent app and foundation models, will generate revenue that exceeds rising costs.

Meta disagrees, saying it sees significant product and business opportunities ahead. It expects full-year capex of $135 billion to $145 billion. Meta also said it plans to raise $95 billion to fund its AI initiatives, starting with $35 billion in underwritten public equity offerings and followed by $60 billion through an at-the-market program.