Alphabet Aims to Raise $25 Billion Through Bond Issuance for AI Funding

Alphabet is seeking to raise up to $25 billion through new U.S. bond issuances following its capital expenditure forecast for 2026. The bonds will be offered in up to ten tranches, with maturities ranging from two to 40 years. This issuance marks a shift for major tech companies funding their AI investments, as cloud computing giants have issued nearly $194 billion in bonds during 2026, a 79% increase compared to the previous year. Tech giants are expected to spend over $730 billion this year, impacting cash flows. Alphabet recorded its first negative free cash flow in history, raising investor concerns about returns from its AI investments.