Alphabet Targets $5B Kangaroo Bond in Australia Amid AI Arms Race

Alphabet, the parent company behind Google and Gemini, is set to issue a Kangaroo bond worth up to $5 billion in Australia's debt market. This would be the country's biggest corporate debt transaction, marking Alphabet's first foray into the Australian bond market. The move comes as the tech giant seeks to bolster its war chest for artificial intelligence (AI) spending in an increasingly competitive field.

The Kangaroo bond is part of a year-long effort by Alphabet to raise funds for AI research and development. Earlier this month, it raised $US25 billion from the US market, with previous issuances in Canada, Japan, Switzerland, and the UK. In March, Alphabet issued a 100-year, £1 billion ($1.9 billion) bond in the UK.

The Australian bond issue is seen as a strategic move to finance Alphabet's AI ambitions against rival tech companies. The company's scramble for cash reflects the growing importance of AI in the tech industry, with Alphabet racing to stay ahead in this high-stakes competition.