Strong investor demand supports larger issuance
Alphabet is set to finalize a global bond issuance exceeding $30 billion, according to people familiar with the matter, marking a significant increase from the $20 billion it raised earlier in the week. The expanded deal underscores strong investor appetite for high-grade debt from technology leaders at the center of the artificial intelligence investment boom.
European markets boost total size
On Tuesday, Alphabet tapped European markets, raising roughly $11 billion through bond sales denominated in sterling and Swiss francs. The transaction pushed the total size of the issuance beyond initial expectations, with overall proceeds approaching $32 billion, according to earlier reports.
Market participants noted particularly strong demand for paper issued by large technology firms, which are widely viewed as well positioned to benefit from long-term growth in artificial intelligence.
Heavy capital spending drives funding needs
The bond sale comes as Alphabet prepares for a sharp increase in capital expenditures. In its most recent earnings report, the company said it expects capital spending to reach as much as $185 billion this year, more than double its outlays in 2025.
Alphabet is part of a broader group of hyperscale technology companies that also includes Amazon, Meta and Microsoft. Collectively, these firms are expected to spend close to $700 billion in 2026 as they invest heavily in data centers, advanced chips and network infrastructure.
Debt markets reopen for big tech
Rising investment needs are pushing major technology companies back into the debt markets. Analysts warn that the scale of current spending could weigh on free cash flow in the near term, making bond issuance a more attractive funding option.
Oracle was the first major technology group to test investor appetite in 2026 with a $25 billion bond offering last week. Sources say Meta is also preparing a sizeable debt sale later this year as it accelerates data center expansion in the United States.
Balance sheet remains a priority
Alphabet has become a more active borrower in recent years. The company completed a $25 billion bond sale in November, and its long-term debt quadrupled in 2025 to $46.5 billion.
Chief Financial Officer Anat Ashkenazi has stressed that the company intends to balance aggressive investment with financial discipline. She said Alphabet is focused on maintaining a strong balance sheet while funding growth initiatives in a fiscally responsible manner.
