Alphabet prepares debut yen bond offering to fund artificial intelligence
Alphabet is considering its first-ever yen-denominated bond issue to finance massive investments in artificial intelligence infrastructure. While the group has not specified the terms of the deal, a Reuters source suggests a figure in the hundreds of billions of yen. Final terms are expected to be set by the end of the month. Alphabet has mandated Mizuho, Bank of America, and Morgan Stanley to lead the offering.
This move illustrates the evolving financing strategies of major US tech groups, which have long remained largely independent of debt markets thanks to their big cash reserves. The rapid expansion of artificial intelligence is now driving industry players to rely more heavily on debt to support capex in data centers, specialized processors, and energy infrastructure. Global AI investments by Big Tech are projected to exceed $700bn this year.
Alphabet recently raised its annual capital expenditure guidance by $5bn, now targeting between $180bn and $190bn for 2026, with a further significant increase expected in 2027. The group already raised nearly $17bn last week through two bond issues in euros and Canadian dollars. Meanwhile, Amazon is also reportedly preparing a debut Swiss franc bond offering to fund its own AI-related investments.
Alphabet Inc. is a holding company organized around 6 areas of activities:
- operation of a web-based search engine (Google). Additionally, the group runs a video hosting and broadcasting site (YouTube) as well as a free on-line messaging service (Gmail);
- development and production of home automation solutions (Nest Labs): Wi-Fi networks synchronized with the control programs for thermostats, smoke detectors and security systems;
- research and development into biotechnology (Calico): dedicated to treating aging and degenerative diseases;
- research into artificial intelligence (Google X);
- investment services: management of an investment fund devoted to young businesses that operate in the new technology sector (Google Ventures) and an investment fund intended for already developed companies (Google Capital);
- operation of a fiber optic internet access network infrastructure (Google Fiber).
Net sales are distributed geographically as follows: the United States (47.6%), Americas (6%), Europe-Middle East-Africa (29.6%) and Asia-Pacific (16.8%).
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