Alphabet Embarks on Massive Bond Sale Amid Fears of AI-Driven Borrowing Spree

Alphabet, the parent company of Google, has announced plans to raise up to $25 billion through a new bond sale. The move comes just two weeks after the company increased its capital expenditure target for 2026 to as high as $205 billion.

The report, which was published by Bloomberg and contained in a regulatory filing, indicates that Alphabet will offer corporate notes with maturities ranging from two to 40 years. This is not the first time the company has tapped the debt market to fund its AI buildout, having issued euro bonds earlier this year.

Investors are concerned about the massive borrowing by big tech companies, including Alphabet and Amazon, to expand their AI infrastructure. Despite Alphabet's AI cloud business delivering impressive results, with revenue reaching $24.8 billion in the quarter ended June 30, the company's shares have dropped by around 9% over the past three months.