Alphabet raises up to $25 billion in debt to cover AI expenses

Google parent company Alphabet plans to raise between $20 billion and $25 billion by issuing new bonds in the United States. According to ixbt.com, the move is aimed at financing the technology giant’s record spending on developing its AI infrastructure. This was reported by Ixbt.com reports .

The company may issue 10 different securities with maturities ranging from 2 to 40 years. The proceeds are expected to be used for general corporate purposes, including building the computing infrastructure required for AI, capital expenditures, and refinancing existing debt.

Sharp Rise in Debt Financing Across the Technology Market

The new borrowing initiative was announced shortly after Alphabet raised its capital expenditure forecast for the second time this year. The rapid growth in AI spending was met with mixed reactions from investors and caused the company’s stock to fall sharply.

In the latest quarter, Alphabet recorded negative free cash flow for the first time in its history. This further intensified questions about when the massive investments in multi-billion-dollar computing infrastructure will pay off and begin generating returns.

Nevertheless, Alphabet continues to diversify its sources of financing. Earlier this year, the company raised nearly $85 billion through share placements, including investments from Berkshire Hathaway. It also issued bonds denominated in Japanese yen, Swiss francs, and British pounds, including a rare security with a 100-year maturity.

Industrywide Trend and Investor Concerns

According to a Reuters analysis based on LSEG data, the trend of raising debt is characteristic of the entire technology industry. In particular, Amazon, Meta, and Oracle issued nearly $194 billion worth of bonds during the first 7 months of the year, 79% more than in the same period of 2025.

Experts forecast that the largest technology companies will spend more than $730 billion on AI technologies in 2026 alone. Even the enormous cash flows of these giants are not enough to fully cover the immense scale of the investments.

Demand for Alphabet bonds remains high, but investors are scrutinizing the market more closely than ever to determine whether future AI revenues will fully justify spending on this scale.