Alphabet Bonds Soar with $25 Billion Raise, Tech Debt Financing Hits Record
Alphabet is ramping up its investment in artificial intelligence infrastructure by raising up to $25 billion through a US bond offering.
The company plans to issue notes across as many as 10 maturities ranging from two to 40 years, with investor demand appearing robust at roughly $115 billion in orders, more than four times the planned issuance.
This move follows a sharp deterioration in Alphabet's free cash flow profile, which reported negative free cash flow of $5.9 billion in the second quarter compared to nearly $25 billion of positive free cash flow a year earlier.
Other tech companies such as Amazon, Meta, and Oracle have also issued about $194 billion of bonds through early July, up 79% from the same period last year, as hyperscalers increasingly rely on debt to finance AI infrastructure.