Alphabet Raises Billions Amidst AI Spending Surge
Alphabet Inc., the parent company of Google, has raised A$5.5 billion ($3.89 billion) in its first Australian dollar bond sale. The company tapped global debt markets amid an AI investment boom, with investors submitting more than A$18 billion ($12.8 billion) in orders, over three times the amount sold.
The deal marks a significant shift for Alphabet's financing strategy, as the company's debt portfolio expanded from roughly $16 billion to about $100 billion in just 12 months, according to Chief Financial Officer Anat Ashkenazi.
Alphabet is increasing its AI spending, raising its 2026 capital expenditure forecast to between $195 billion and $205 billion. The company burned $5.9 billion in the second quarter and reported negative free cash flow for the first time in its history.