Alphabet Inc. (GOOG)Stock: Raises Nearly $32B in Global Bond Sales to Fund AI Expansion

TLDR

• Alphabet secured nearly $32B in bonds worldwide to support aggressive AI investment plans.
• The Google parent issued dollar, sterling, and Swiss franc debt to fund AI infrastructure.
• A rare 100-year bond helped Alphabet attract long-term investors for AI spending.
• Strong demand showed investor confidence as Alphabet ramps up AI capital expenditure.
• Alphabet’s bond spree highlights how hyperscalers finance massive AI buildouts globally.

Alphabet Inc. raised almost $32 billion in debt in less than 24 hours to fund its 2026 capital spending on artificial intelligence. The funding combined a $20 billion U.S. dollar bond sale with large offerings in sterling and Swiss francs.

Alphabet structured the deals across several maturities and currencies. That approach allowed it to tap different investor groups without concentrating supply in one market. The move also highlighted the scale of capital needed to expand data centers, chips, and cloud capacity.

The fundraising came days after Alphabet told investors it expects 2026 capital expenditures of $175 billion to $185 billion to fund data center and AI infrastructure expansion. The guidance also marked a significant increase from prior years.

Alphabet Uses Dollar Notes to Support AI Capex Plans

The U.S. dollar offering formed the base of the fundraising effort. Alphabet issued seven tranches with maturities from 2029 through 2066. Coupon rates ranged from about 3.7% on shorter notes to roughly 5.75% on the longest bonds.

The company holds strong credit ratings of Aa2 from Moody’s and AA+ from S&P. Those ratings supported demand from investment-grade buyers. Investors viewed the structure as a way to manage duration while backing a large-scale technology issuer.

The proceeds will support long-lived assets with extended payback periods. Alphabet aligned the maturities with expected cash flows from AI services. The structure reduced near-term refinancing pressure and preserved financial flexibility.

Century sterling bond draws pension demand and sets UK record

Alphabet’s sterling offering raised £5.5 billion, setting a new record for corporate issuance in the UK bond market. The sterling package included a £1 billion bond with a 100-year maturity. Notably, technology firms rarely issue debt with such long tenors.

UK pension funds and insurers showed strong interest in the century bond. These investors often seek long-dated assets to match liabilities. Demand reached several times the amount offered, according to deal statistics.

The century bond is priced about 1.2 percentage points above 10-year UK government bonds. Shorter sterling notes are priced at narrower spreads. The mix attracted both long-term and short-duration buyers in one transaction.

Swiss franc issuance widens reach as hyperscaler borrowing grows

Alphabet also sold more than 3 billion Swiss francs of bonds across five maturities. The deal set a record in the Swiss corporate market. Issuance in francs allowed the company to diversify funding sources further.

Market participants expect hyperscalers to keep borrowing as AI spending rises. Morgan Stanley has projected that large cloud firms could issue around $400 billion in debt this year. That would exceed borrowing levels seen in 2025.

Andrea Seminara, chief executive of Redhedge Asset Management LLP, said hyperscalers will continue to test investor appetite across markets. Alex Ralph, a portfolio manager at Nedgroup Investments Global Strategic Bond Fund, noted that century bonds remain rare due to long-term business uncertainty.

Other technology firms also plan heavy spending. Oracle Corp., Meta Platforms Inc., and Microsoft Corp. have all outlined large AI budgets. Alphabet’s multi-market bond strategy shows how leading firms now finance that scale of investment.

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