Alphabet is seeking to raise as much as $25 billion in a U.S. investment-grade bond offering, a move the company and bankers say will test demand for debt tied to heavy artificial-intelligence spending following a July selloff.
The size and timing matter because Alphabet has substantially increased borrowing this year to fund AI-focused capital expenditure and cloud capacity, leaving long-term debt materially higher as management accelerates Gemini, custom chips and data‑centre rollouts.
UBS maintained a Neutral rating on Alphabet even as it reported that Google Cloud revenue surged 82% to $24.8 billion with improved margins, underscoring a tension between rising AI-driven revenue and the cashflow timeline investors are pricing.
The planned U.S. deal follows a larger 2026 borrowing spree that included sizeable U.S. and sterling note sales earlier in the year and a rare 100‑year sterling tranche that drew very strong demand.
No final decision has been made on the size of the new offering No final decision, and investors will watch whether demand holds for another large issuance tied to Alphabet’s AI investment programme.
