Pimco Wins $29 Billion Meta Deal by Outmaneuvering Apollo and KKR in Private Credit Competition.

Pimco and Blue Owl won a $29 billion deal to fund Meta's data center in Louisiana, outmaneuvering Apollo and KKR. The deal, arranged by Morgan Stanley, was so large that Meta and Morgan Stanley didn't want to rely on just one firm. Pimco, a leading institutional bond firm, and Blue Owl, a private credit player, were chosen for their ability to fund the whole deal quickly. The deal is a significant win for Pimco, which has been diversifying beyond its background in publicly traded debt.

In a significant financial move, Pacific Investment Management Co. (Pimco) and Blue Owl Capital Inc. have been chosen to fund Meta Platforms Inc.'s sprawling data center in Louisiana. The deal, valued at $29 billion, was arranged by Morgan Stanley and is one of the largest private credit deals to date. Pimco and Blue Owl outmaneuvered Apollo Global Management Inc. and KKR & Co. to secure the deal, which underscores the growing importance of private capital in funding AI infrastructure.

The competition for this deal was intense. Morgan Stanley approached four of the world’s biggest asset managers in July, requiring them to pair up to ensure they could fund the entire deal quickly. Pimco and Blue Owl were chosen for their ability to fund the whole deal quickly, while Apollo and KKR were also considered strong contenders. The final decision was made in early August, with Pimco and Blue Owl emerging victorious [1].

The deal is a significant win for Pimco, which has been diversifying beyond its background in publicly traded debt. Alongside Morgan Stanley, Pimco will arrange $26 billion of investment-grade bonds for the Meta project, while Blue Owl will put up $3 billion in equity funding. This marks a strategic move for Pimco, which has been looking to expand its role in private credit.

The deal highlights the massive financial stakes behind the rise of artificial intelligence. The data centers being built in just the next two years will require some $150 billion of financing, according to an analysis released by JPMorgan Chase & Co. on Aug. 7. Half of that could be bundled into commercial mortgage-backed securities, leaving another $70 billion to $90 billion up for grabs [2].

The Meta financing is not finalized, and the details are still in flux. However, potential investors have had initial discussions about pricing the bonds at 1.5 percentage points above the company’s publicly traded debt. Some of the securities are expected to be syndicated in the coming weeks.

The race to capture this business comes with obvious risks. The most visible face of the AI industry, OpenAI, released its latest chatbot, GPT-5, to tepid reviews this month, ramping up questions about whether the progression toward super intelligence is slowing down. However, the opportunity is too big for any financial firm to pass up.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-19/how-pimco-outmaneuvered-apollo-kkr-to-win-29-billion-meta-deal
[2] https://blog.ucs.org/paul-arbaje/entergy-wants-to-fast-track-gas-plants-for-meta-data-center-leaving-ratepayers-with-the-bill/