Alphabet’s debt issuance is expanding, with the tech giant now reportedly nearing the finalization of a global bond sale exceeding $30 billion. This significant increase from an initial $20 billion issuance on Monday reflects the escalating capital demands of the AI race and the broader technology sector.
On Tuesday, Alphabet tapped the European market, raising approximately $11 billion in sterling and Swiss franc-denominated bonds. This move underscores the company’s strategy to diversify its funding sources and cater to a global investor base. The total size of the offering, approaching $32 billion, positions it as one of the largest corporate debt issuances in recent times.
Investor appetite for debt from established technology leaders, particularly those at the forefront of artificial intelligence development, remains robust. This heightened demand can be attributed to the perceived stability and future growth prospects of these companies, driven by their substantial investments in AI infrastructure.
Alphabet’s increased borrowing comes shortly after it signaled a massive ramp-up in capital expenditures. In its latest earnings report, the company projected capital spending of up to $185 billion for the current year, more than doubling its expenditure from 2025. This aggressive investment strategy is mirrored by other hyperscalers such as Amazon, Meta, and Microsoft, who are collectively expected to pour close to $700 billion into AI-related initiatives in 2026. This includes substantial outlays for high-performance chips, vast data center facilities, and advanced networking technologies. Consequently, analysts anticipate a significant decrease in free cash flow for these tech giants this year as they prioritize this AI-driven expansion.
The broader tech industry is actively engaging with debt markets to finance these ambitious projects. Oracle recently initiated the trend with a $25 billion debt offering, and Meta is also reportedly preparing a substantial debt issuance to fuel its data center expansion.
Alphabet itself has a history of leveraging debt for growth. In November, the company raised $25 billion through a bond sale, and its long-term debt more than quadrupled in 2025, reaching $46.5 billion. Chief Financial Officer Anat Ashkenazi emphasized a commitment to fiscal responsibility, stating, “we want to make sure we do it in a fiscally responsible way, and that we invest appropriately, but we do it in a way that maintains a very healthy financial position for the organization.” This latest debt issuance suggests a continued strategic approach to funding its long-term vision, balancing investment needs with financial prudence.
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