Alphabet raises $20B in bonds to fund AI expansion
Alphabet has raised $20 billion through a multi-part bond sale to help finance its rapidly growing spending on artificial intelligence infrastructure.
The seven-part offering highlights how major technology companies are increasingly turning to debt markets to support massive investments in data centers, AI chips and cloud infrastructure, News.Az reports, citing Reuters.
The move marks a shift from Big Tech’s traditional reliance on strong cash flows to fund innovation, as AI development costs surge across the industry.
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Technology giants including Alphabet, Microsoft, Amazon and Meta are expected to collectively spend at least $630 billion on AI-related investments this year, with most funding directed toward data center expansion and advanced computing hardware.
Alphabet’s bond notes are structured to mature between 2029 and 2066. The company is also reportedly considering issuing sterling-denominated bonds, potentially including a rare 100-year “century bond.”
Analysts say investor demand for long-term tech debt reflects confidence in AI’s long-term growth potential, despite concerns that financial returns from AI investments have not yet fully matched spending levels.
By Aysel Mammadzada
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