Alphabet Incorporated is seeking to raise as much as US$25 billion through a 10-part benchmark bond sale as the Google parent accelerates investment in artificial intelligence (AI) infrastructure while taking advantage of favourable borrowing conditions.
The offering, which was expected to be priced on Thursday, spans maturities ranging from two to forty years and includes both fixed and floating-rate notes, according to Bloomberg News.
Despite being one of the world’s most cash-rich technology companies, Alphabet is turning to the debt market as it embarks on one of the largest capital investment programmes in its history. The proceeds are expected to support the expansion of data centres, server capacity and semiconductor infrastructure needed to power its Gemini AI models and cloud computing services.
The move follows the company’s decision to increase its full-year 2026 capital expenditure forecast to between US$195 billion and US$205 billion during its second-quarter earnings report. The higher spending reflects Alphabet’s growing commitment to strengthening its AI capabilities amid intense competition across the technology sector.
The senior unsecured notes are expected to carry high-grade Aa2 and AA+ credit ratings, reinforcing Alphabet’s position as one of the strongest corporate borrowers in global debt markets.
The transaction has been structured to attract a wide range of investors. The shortest-dated securities include two-year fixed-rate notes due in August 2028, marketed at about 60 basis points above comparable United States Treasury yields, alongside a two-year floating-rate tranche linked to the Secured Overnight Financing Rate (SOFR).
Three-year fixed-rate notes due in August 2029 are being marketed at around 70 basis points above Treasuries, accompanied by another SOFR-linked floating-rate issue.
In the intermediate section of the offering, five-year notes due in 2031 are expected to price at approximately 85 basis points above Treasuries, while seven-year notes due in 2033 are being marketed at around 100 basis points.
Longer-dated securities include 10-year notes due in 2036 at about 110 basis points above Treasuries, 20-year notes due in 2046 at around 130 basis points, and 30-year notes due in 2056 at approximately 140 basis points.
The offering is completed by a 40-year tranche maturing in 2066, with initial pricing discussions at roughly 155 basis points above Treasury yields.
All fixed-rate tranches include make-whole call provisions together with standard par call windows ranging from one to six months before maturity.
The size and structure of the bond sale underscore the scale of Alphabet’s AI ambitions. Rather than relying solely on its substantial cash reserves, the company is using low-cost debt to preserve financial flexibility while funding long-term infrastructure projects expected to support future growth.
The deal is being led by a syndicate of major Wall Street banks comprising Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo, acting as joint bookrunners.
