Alphabet Taps Debt Markets for $20-$25 Billion AI Funding Push

Alphabet is tapping debt markets to raise funds for its artificial intelligence (AI) spending. The Google parent is seeking to issue between $20 billion and $25 billion in US bonds, with investor appetite remaining strong despite concerns over cash demands from AI infrastructure.

The company has attracted about $115 billion in orders for the bond sale, more than four times the targeted issuance size. This suggests that investors remain confident in Alphabet's long-term financial strength, even as it significantly increases spending on AI infrastructure.

Alphabet's latest debt raise follows a major shift in its cash flow profile. The company reported negative free cash flow of $5.9 billion in the second quarter, compared with nearly $25 billion of positive free cash flow during the same period last year.

The fundraising also comes after Alphabet announced an $80 billion equity raise in June and increased the offering size to nearly $85 billion amid strong investor demand.