Key facts
- Alphabet is aiming to raise up to $25 billion through a new bond sale.
- The offering includes notes with maturities spanning two to 40 years.
- This move occurs amid significant AI infrastructure investment by Big Tech companies.
- Alphabet recently raised its capital expenditure forecast and reported negative free cash flow.
Alphabet is looking to raise as much as $25 billion from its latest U.S. bond offering, Bloomberg News reported on Thursday citing people familiar with the matter. The company is offering notes in as many as 10 parts, with maturities ranging from two to 40 years. This debt raise comes weeks after the tech giant's capital spending outlook triggered a selloff and as Big Tech collectively is expected to spend more than $730 billion this year primarily on AI. Alphabet had previously raised its annual capital expenditure forecast for the second time this year, fueling concerns over the pace of returns on its AI investments, especially amid worries about delays to its flagship AI model. The company also reported its first ever negative free cash flow in its second-quarter results.