Alphabet plans $25B AI bond issue
Reports have indicated that Alphabet is aiming to raise up to $25 billion through its latest issuance of high-credit-rated U.S. bonds, in an effort to test investor appetite for AI-related debt. The offering includes the issuance of bonds in up to 10 tranches with maturities ranging from two to 40 years, with expectations of a spread approximately 1.55 percentage points above Treasury yields. This comes after Alphabet raised its expenditure forecast for 2026 to around $205 billion, raising concerns about the returns on massive investments in artificial intelligence—especially following a decline in demand for its bonds in July, amid widening spreads of AI-linked bonds issued by companies like SpaceX.
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