Alphabet plans to raise up to $25 billion through a new U.S. bond offering to fund its extensive AI infrastructure.
Alphabet is seeking to raise as much as $25 billion from its latest U.S. bond offering, according to a regulatory filing. The tech giant plans to offer notes in as many as 10 parts with maturities ranging from two to 40 years. This move follows a recent increase in the company's 2026 capital expenditure target to $205 billion, which led to a sell-off in Alphabet shares. By tapping the debt market, Alphabet joins other tech giants like Amazon and Meta in shifting toward borrowing to fund costly AI investments. While the company's AI cloud business continues to show strong growth, investors remain cautious due to the massive outlay required for infrastructure. The offering comes after Alphabet also raised capital through equity offerings and various international bond markets, including a rare 100-year bond. Despite the high spending, Google Cloud revenue reached $24.8 billion in the second quarter, marking an 82% increase from the previous year.