Alphabet Inc., Google’s parent company, is tapping Europe’s debt markets again, planning to sell at least €3 billion ($3.5 billion) in bonds across six tranches. The move comes as the tech giant ramps up borrowing to fund its expansive AI infrastructure buildout, according to reports from Moneycontrol and Bloomberg.
The latest offering features euro-denominated bonds, with the longest tranche maturing in 2063 and priced around 205 basis points above mid-swaps. This follows a pattern of aggressive debt issuance by Alphabet, including earlier sales in U.S. dollars, sterling, and Swiss francs, amid projections of up to $190 billion in AI-related capital spending this year.
Alphabet’s debt strategy underscores Big Tech’s heavy reliance on bond markets to finance data center expansions and other AI initiatives. The company has seen strong investor demand in prior deals, such as a rare 100-year sterling bond earlier this year, which helped push its total bond haul beyond $31.5 billion in recent European transactions.
Market observers note that high-quality corporate issuers like Alphabet continue to attract capital even as supply concerns linger. This euro deal, set for pricing on Monday, highlights sustained appetite for long-duration debt from firms betting big on artificial intelligence.
The issuance aligns with Alphabet’s broader financial playbook, balancing cash reserves with low-cost borrowing to support growth amid competitive pressures in AI development. Investors remain focused on how much further tech giants will lean on debt to sustain their capex surge.
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