Finance
Alphabet sells bonds worth $20 billion to fund AI spending
Published by Global Banking & Finance Review®
Posted on February 10, 2026
1 min readLast updated: February 10, 2026
Quick Summary
Alphabet sells $20 billion in bonds to fund AI infrastructure, marking a shift in Big Tech financing from cash flow to debt.
Alphabet Raises $20 Billion Through Bond Sales for AI Investments
Funding Artificial Intelligence Growth
Feb 10 (Reuters) - Alphabet has sold bonds worth $20 billion in a seven-part offering stretching out to 2066, tapping the debt market to fund its surging spending on artificial intelligence infrastructure.
Shift in Big Tech Financing
The disclosure on Tuesday underscored Big Tech's growing appetite for credit, in a shift away from years of relying on strong cash flows to fund investment in new technologies.
Investor Concerns Over AI Investments
The pivot has raised investor concerns as payoffs remain small from the hundreds of billions of dollars U.S. tech giants are pouring into AI.
Comparison with Oracle's Note Sale
Their capital expenditure is expected to total at least $630 billion this year, with most of spending focused on data-centers and the AI chips that power them.
Alphabet's announcement follows a $25 billion note sale by Oracle disclosed on February 2 in a securities filing.
Last week, Alphabet said it would spend as much as $185 billion this year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)
Key Takeaways
- •Alphabet raises $20 billion through bond sales.
- •Funds will support AI infrastructure investments.
- •Shift from cash flow to debt financing in Big Tech.
- •Investor concerns over AI investment returns.
- •Comparison with Oracle's recent $25 billion note sale.
Frequently Asked Questions about Alphabet sells bonds worth $20 billion to fund AI spending
1What is a corporate bond?
A corporate bond is a debt security issued by a corporation to raise funds. Investors receive periodic interest payments and the principal amount back at maturity.
2What is artificial intelligence (AI)?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. It encompasses various technologies, including machine learning and natural language processing.
3What is capital expenditure?
Capital expenditure (CapEx) is the funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
4What are debt instruments?
Debt instruments are financial assets that represent a loan made by an investor to a borrower. They include bonds, notes, and debentures.
5What is an investment strategy?
An investment strategy is a plan designed to guide an investor's decisions on how to allocate assets in order to achieve specific financial goals.