Alphabet plans first yen bond sale for AI expansion

Alphabet is preparing to launch its first-ever Japanese yen-denominated bond sale as major technology companies increasingly tap global debt markets to finance massive artificial intelligence investments.

According to regulatory filings, the Google parent plans to issue bonds in Japan, though the company has not officially disclosed the size of the offering. Sources familiar with the matter said the deal could total several hundred billion yen, with pricing terms expected to be finalized later this month, News.Az reports, citing Reuters.

The move reflects a broader shift across Silicon Valley, where tech giants are increasingly relying on debt financing rather than cash reserves to support the enormous costs associated with AI infrastructure, data centers, and advanced computing systems.

Alphabet has reportedly appointed Mizuho Financial Group, Bank of America, and Morgan Stanley to manage the transaction.

The company’s planned yen bond issuance would mark its first debt sale in Japanese currency, according to LSEG data. The offering follows two major international bond sales completed last week, including a €9 billion issue and a C$8.5 billion issue that together raised nearly $17 billion.

Alphabet has significantly increased spending plans tied to AI expansion. In late April, the company raised its annual capital expenditure forecast by an additional $5 billion, bringing expected spending for 2026 to between $180 billion and $190 billion. Executives also signaled another major increase could come in 2027.

The rapid escalation in AI-related spending has transformed capital markets activity among the world’s largest technology firms. Analysts estimate Big Tech companies could collectively spend more than $700 billion on AI infrastructure this year, sharply up from around $410 billion in 2025.

Meanwhile, Amazon is also reportedly preparing a first-time Swiss franc bond issuance as it seeks additional funding for long-term investments.

Sources said Amazon has hired BNP Paribas, Deutsche Bank, and JPMorgan Chase for a multi-part debt offering with maturities ranging from three to 25 years.

The growing reliance on global bond markets highlights how the AI race is reshaping corporate finance strategies, with even cash-rich technology companies turning to international investors to secure long-term funding for increasingly expensive infrastructure expansion.

News.Az 

By Aysel Mammadzada