Alphabet Aims to Raise Up to $25 Billion in Latest US Bond Sale for AI Growth
Alphabet's Strategic Bond Offering and AI Investment Surge
Overview of the Bond Sale
Aug 6 (Reuters) - Alphabet is looking to raise between $20 billion and $25 billion from its latest U.S. bond offering, a source familiar with the matter said on Thursday, 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. The maturities on the notes range from two to 40 years, the source said.
Alphabet did not comment on the size of the offering and maturities. Bloomberg News first reported the offering size.
AI Spending and Financing Trends Among Tech Giants
Shift from Cash Reserves to Debt Financing
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.
Bond Issuance by Hyperscalers
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.
Financial Impact and Capital Expenditure
Record AI Spending and Cash Flow Squeeze
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.
Rising Capital Expenditure and Investor Concerns
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.
Other Fundraising Activities and Global Bond Sales
Equity Offerings and Investor Appetite
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.
International Bond Sales
Multi-Currency Issuance
The company has also sold bonds in Japanese yen, Swiss francs and British pounds - including a rare 100-year bond earlier this year.
(Reporting by Deborah Sophia in Bengaluru and Tatiana Bautzer in New York; Editing by Arun Koyyur)