Alphabet targets up to $25 billion bond sale explicitly for AI infrastructure capital expenditure

Alphabet is seeking to raise as much as $25 billion through a multi-tranche U.S. investment-grade bond offering, according to people familiar with the matter. The company is funding its expanding AI infrastructure investments with the offering, which could include maturities ranging from two to 40 years. The move comes after Alphabet increased its 2026 capital spending outlook to as much as $205 billion and follows recent signs of softer investor demand for AI-related debt.

The offering is expected to include up to 10 tranches with maturities from two to 40 years. Initial price talk for the 40-year notes is about 155 basis points above U.S. Treasuries.

Alphabet has already raised more than $50 billion in debt during the first half of 2026 and issued nearly $85 billion of equity earlier this year. The company's higher AI spending outlook contributed to its first quarter of negative free cash flow since its 2004 IPO.

The deal follows recent AI-related bond offerings from Meta and Amazon-linked issuers that saw softer investor demand.