Alphabet Raises Up to $25 Billion in Bond Sale to Finance AI Infrastructure Expansion

Alphabet seeks up to $25 billion from its latest bond sale: Bloomberg

Alphabet is seeking up to twenty-five billion dollars from its latest U.S. bond offering. This move comes after the tech giant's capital spending outlook triggered a significant selloff. Hyperscalers are issuing more bonds to fund costly artificial intelligence investments. Big Tech companies are expected to spend over seven hundred thirty billion dollars this year. Alphabet posted its first negative free cash flow in its second-quarter report. Alphabet is looking to raise as much as $25 billion from its latest U.S. bond offering, Bloomberg News reported on Thursday, citing people familiar with the matter, weeks after the tech giant's 2026 capital spending outlook triggered a steep selloff. The company is offering notes in as many as 10 parts, a regulatory ⁠filing showed ⁠on Thursday. The maturities on the notes range from two to 40 years, Bloomberg reported. Reuters could not immediately verify details on the offering. Alphabet did not immediately comment on the size of the offering. The debt raise is the latest in a series of moves by tech giants looking to fund their costly AI spending, a shift ⁠in strategy for these companies that have typically relied on their large cash reserves to fund investments. Hyperscalers Amazon, Alphabet, Meta and ⁠Oracle issued about $194 billion worth of bonds in 2026 through July 7, up 79% from roughly $108 billion in 2025, a Reuters analysis of LSEG data showed last month. Big Tech is expected to spend more than $730 billion this year primarily on AI, and the massive outlay is already squeezing cash flows. Alphabet late in July posted its first ever negative free cash flow in its second-quarter report. It also raised its annual capital expenditure forecast for the second time this year, fanning fears over the pace of ⁠returns on its AI investments, especially as concerns mount over delays to its flagship AI model. Alphabet in June announced an $80 billion raise through equity offerings, including an investment from Berkshire Hathaway, and later increased the offering size to nearly $85 billion due to strong investor appetite. The company has also sold bonds in Japanese yen, Swiss francs and British pounds - including a rare 100-year bond earlier this year.

Alphabet taps bond market with sweeping 10-part offering to fuel AI ambitions By Investing.com

Alphabet Inc. (NASDAQ: GOOGL) is hitting the U.S. corporate debt market with a massive 10-part benchmark bond sale, capitalizing on its pristine credit ratings to lock in capital as the tech giant rapidly scales its infrastructure. Expected to price today, the sprawling transaction spans maturities from two to 40 years and features a mix of fixed and floating-rate notes, according to a person familiar with the matter cited by Bloomberg News. Funding the AI Arms Race While a notoriously cash-rich tech titan issuing debt might seem counterintuitive, Alphabet is in the midst of a historic capital expenditure cycle. The company has indicated it could spend up to $185 billion on capital expenditures in 2026 -- roughly double its previous outlays -- to build out the sprawling data centers, compute capacity, and semiconductor infrastructure required for its Gemini AI models and cloud services. Tapping the debt market allows Alphabet to fund this aggressive expansion while preserving its massive cash reserves and optimizing its cost of capital. Inside the Tranches The SEC-registered, senior unsecured debt is expected to carry top-tier Aa2/AA+ ratings. The multi-tranche structure is designed to appeal to a broad spectrum of fixed-income investors, from short-term money managers to long-duration pension funds: * The Short End: The two-year fixed-rate notes (due August 15, 2028) are carrying initial price talk in the area of 60 basis points over U.S. Treasuries, alongside a two-year floating-rate tranche marketed at a SOFR equivalent. Three-year fixed notes (due August 15, 2029) are targeting a +70 bps spread, also paired with a three-year SOFR-linked floater. * The Belly: Five-year fixed-rate notes (due August 15, 2031) are hovering in the +85 bps area, while the seven-year paper (due August 15, 2033) is pegged at +100 bps. Both include standard make-whole call (MWC) provisions and near-term par calls. * The Long End: The 10-year benchmark (due August 15, 2036) features initial pricing discussions at +110 bps, stepping up to +130 bps for the 20-year notes (due 2046) and +140 bps for the 30-year notes (due 2056). * The Ultra-Long: Rounding out the mammoth offering is a 40-year tranche maturing August 15, 2066, with initial pricing discussions landing in the +155 bps area. All fixed-rate tranches include make-whole call provisions, with standard par call windows ranging from one to six months prior to maturity. A syndicate of Wall Street heavyweights -- including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo -- are serving as joint bookrunners for the blockbuster deal.

Alphabet Preps Bond Deal of Up to $25bn to Fund AI

Alphabet wants to issue up to ten bond tranches totaling between $20bn and $25bn, with maturities ranging from two to 40 years, according to Bloomberg. The fundraising fits a broader trend among Big Tech groups that are increasingly turning to the debt markets to finance AI infrastructure. Between early 2026 and July 7, Amazon, Alphabet, Meta and Oracle issued about $194bn of bonds, up 79% from a year earlier. The strategy comes as capital spending by the largest technology groups is expected to top $730bn this year. Alphabet recently posted negative free cash flow for the first time in its history and has twice raised its investment outlook, stoking concerns about how quickly its AI projects will pay off. In parallel, the group has already bolstered its financing this year through a nearly $85bn capital raise and several foreign-currency bond offerings, including a 100-year bond.