Alphabet Seeks up to $25 Billion in US Bond Sale to Fund AI Spending
The company said the deal would be its last U.S. sale this year as buyers grow wary that heavy AI spending may not pay off.
- Tech giants have raised more than $200 billion this year, overwhelming bond markets and prompting underwriters to space out debt sales. Alphabet Inc. announced on Thursday its latest bond sale would be its last in the US market this year.
- Money managers have grown wary as Nvidia, SpaceX, and Amazon each raised $25 billion only to see their debt crater below issue price immediately after trading began. Spreads widened as investors feared massive AI spending would not pay off.
- BlackRock navigated cooling demand by scheduling non-deal roadshows to anchor investor interest before launch. The firm successfully priced its $12.5 billion bond sale after offering a 7.5% yield, helping bonds outperform after pricing.
- Bankers predict $50 billion to $60 billion in hyperscaler debt will hit the market following the Labor Day holiday in early September. Some clients requested issuance pauses to accommodate the supply surge.
- Meanwhile, Morgan Stanley is arranging $15 billion for an Anthropic PBC data-center project backed by Google, while Goldman Sachs discusses a $5.4 billion offering for a Blackstone-backed QTS data center tied to Microsoft Corp.
21 Articles
21 Articles
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Big Tech's AI Borrowing Binge Hits Record Levels As Alphabet (NASDAQ: GOOGL) Prepares $25 Billion Bond Sale
Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Meta (NASDAQ: META), and Oracle (NYSE: ORCL) have issued roughly $194 billion in bonds this year, nearly twice their combined total for all of 2025. Alphabet’s latest bond sale could add as much as $25 billion more, pushing its total debt issuance for the year to nearly $77 billion. The 10-part sale stretches from two-year notes all the way to bonds maturing in 2066, reflecting the long-horizon na…
AI Debt Indigestion Forces Wall Street to Rethink Bond Sales
When BlackRock Inc. sought to raise billions in debt financing for a Meta Platforms Inc. data center, there was one type of investor the asset management giant wanted to avoid: those looking for a quick profit.
Alphabet, Google's parent company, whose quarterly free cash flow (FCF) turned negative due to investments in artificial intelligence (AI) infrastructure, has once again set out to raise a large amount of capital in the bond market. According to Reuters on the 6th (local time), Alphabet announced that it will issue dollar-denominated corporate bonds worth up to $25 billion (approximately 36 trillion won). The bonds consist of 10 tranches with ma…
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