Key facts
- Alphabet is seeking to raise between $20 billion and $25 billion through a U.S. bond offering.
- The offering includes notes with maturities ranging from two to 40 years.
- Alphabet recently increased its capital expenditure forecast and highlighted plans for AI investments.
- Other major tech companies like Amazon, Nvidia, Salesforce, Oracle, Meta, and Verizon are also tapping debt markets.
- Big Tech's combined spending on AI is projected to exceed $730 billion this year.
Alphabet is looking to raise between $20 billion and $25 billion from its latest U.S. bond offering, according to a source 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 Google parent company raised its 2026 spending forecast and highlighted plans for increased AI-related investments amid growing investor scrutiny of returns on such spending.
Alphabet's move is part of a broader trend among major technology companies to tap debt markets to fund significant investments in artificial intelligence infrastructure. Combined, these tech giants are expected to spend over $730 billion this year on AI, a substantial increase from previous estimates. This marks a shift for Silicon Valley firms, which historically relied more heavily on internal cash reserves for such large-scale investments.
Other technology companies are also actively raising capital through bond issuances. Amazon is seeking at least $25 billion, Nvidia plans to raise $25 billion, and Salesforce recently priced a $25 billion debt offering. Oracle expects to raise $45 billion to $50 billion in 2026, while Meta Platforms filed for a bond offering of up to $30 billion to finance AI expansion. Verizon is also raising approximately $11 billion to fund an acquisition.
Alphabet's debt outstanding stands at $100.14 billion, with $55.91 billion in cash and cash equivalents. Its next bond payment is $2 billion due on August 15, 2026. The company also plans to sell Japanese yen-denominated bonds for the first time and previously sold a 100-year bond worth $1.35 billion in February as part of a larger global debt raise.