Alphabet plans to sell US bonds in order to raise about $15 billion

Bloomberg News said Monday that Alphabet is looking to raise about $15 billion by selling highly rated US dollar-denominated notes, according to people with knowledge of the situation.

Tech companies are turning to debt sales worth tens of billions of dollars to finance infrastructure expansion amid rising demand for artificial intelligence workloads.

Despite the fact that profitability trailed the rate of investment growth, cloud computing companies, also referred to as hyperscalers, are anticipated to invest over $630 billion overall this year, mostly in AI.

Google’s parent company is selling bonds in up to seven tranches, according to its regulatory filing, which did not disclose the size of the sale.

Initial pricing discussions for the longest part of the deal (a bond maturing in 2066) are for a premium of about 1.2 percentage points over Treasury bonds.

The top five AI hyperscalers (Amazon, Alphabet’s Google, Meta, Microsoft, and Oracle) issued $121 billion in U.S. corporate bonds last year, compared with an average of $28 billion annually between 2020 and 2024, according to a report published on January 9 by BofA Securities.

Oracle raised $18 billion in new debt in September, while Meta raised $30 billion in October, the largest single issuance of non-M&A high-grade bonds in history.