Alphabet sets $25 billion bond sale, $115 billion demand

Alphabet Inc., the parent company of Google, is moving forward with a major bond offering to raise up to $25 billion, signaling a profound shift in how the world's largest technology companies are financing their massive investments in artificial intelligence. The offering, which began marketing on Thursday, August 6, 2026, consists of up to ten tranches of notes with maturities ranging from two to 40 years, according to regulatory filings and sources familiar with the matter. Investor demand has reportedly been exceptionally strong, with orders reaching approximately $115 billion, far exceeding the target size.

The debt issuance is a direct response to Alphabet's soaring capital expenditure, which the company recently forecast to be between $195 billion and $205 billion for 2026. This staggering sum, more than double its 2025 outlays, is primarily dedicated to building data centers, securing AI chips, and expanding cloud infrastructure to support its Gemini AI platforms and other services. The aggressive spending has already impacted the company's finances, contributing to a negative free cash flow of $5.9 billion in the second quarter, a sharp reversal from nearly $25 billion...