Alphabet Seeks $25B Bond Sale to Fuel AI Spending Binge

Alphabet is turning to debt markets once again to fund its artificial intelligence spending. The Google parent company plans to raise between $20 billion and $25 billion through a US bond offering, according to a source familiar with the matter.

The fundraising comes just weeks after Alphabet projected elevated capital expenditure for 2026, which unsettled investors despite continued investment in AI infrastructure.

The company is offering notes in as many as 10 tranches, with maturities ranging from two years to 40 years. Investor appetite for Alphabet's debt appears robust, with about $115 billion in orders for the bond sale, more than four times the targeted issuance size.

This trend highlights a broader shift across the technology sector, where companies are increasingly borrowing to finance AI expansion. Big Tech companies are expected to spend over $730 billion this year, with AI infrastructure accounting for the bulk of that expenditure.