Alphabet to Issue $15B in U.S. Corp Bonds to Fund AI Investments (GOOGL)

Alphabet Inc. (GOOGL) is planning to issue U.S. investment-grade corporate bonds to raise about $1.5 billion, leveraging the growing bond market as tech companies accelerate spending on artificial intelligence infrastructure, according to Bloomberg. With cloud leaders expanding AI capabilities, analysts estimate AI-related capital expenditures by large tech firms will exceed $650 billion this year. While investor appetite remains strong—Oracle (ORCL) raised $25 billion in bonds last week with record demand—concerns are emerging over whether AI investments are overheating. The offering will be structured into up to seven maturities, with the longest potentially maturing in 2026, and a spread of roughly 1.2 percentage points over U.S. Treasuries, per early discussions. Alphabet is also evaluating Swiss franc and British pound-denominated issuances, including a rare 100-year maturity. Alphabet, which cited a potential $185 billion in capital expenditures this year and posted quarterly results exceeding analyst averages, last issued bonds in November 2025 to raise $17.5 billion, with about $90 billion in subscriptions, including a 50-year maturity. The company has not yet commented. According to Bloomberg Intelligence, cumulative capital expenditures for AI, cloud infrastructure, and data centers are expected to reach $3 trillion through 2029.