The sale of debt at Alphabet continues to increase. People familiar with the agreement stated that the company is on the verge of issuing a global bond worth more than $30 billion in debt, a higher amount than the $20 billion it had previously announced.
Alphabet went to the European market to raise roughly $11 billion on Tuesday morning in sterling and Swiss francs. Bloomberg has previously reported that Alphabet raised nearly $32 billion.
The source indicated that investors are increasing their demand for high-quality paper from tech powerhouses that are at the forefront of artificial intelligence.
In its earnings report last week, Alphabet indicated that it anticipates spending as much as $185 billion in capital expenditures in 2020, more than it spent in 2025. However, the set of hyperscalers that also comprises Amazon, Meta, and Microsoft is estimated to spend nearly $700 billion together in 2026.
As tech firms invest heavily in expensive chips, sizable plants, and networking technology, analysts anticipate a downturn in free cash flow this year.
Therefore, Oracle became the first big tech company to experiment in the debt market, offering $25 billion of its offer last week in 2026. Meta is planning an extensive debt offering in the first half of this year, the sources said, as it seeks to hasten its data center initiative in the U.S.
Alphabet conducted a sale of bonds worth $25 billion in November. Its long-term debt increased four times to $46.5 billion in 2025. CFO Anat Ashkenazi said on last week’s earnings call that as the company considers its total investment, “we want to make sure we do it in a fiscally responsible way, and that we invest appropriately, but we do it in a way that maintains a very healthy financial position for the organization.”
The filing reported, “We and our competitors are constantly adjusting to meet this shift and provide new and evolving advertising formats. There is no assurance that we will adapt effectively and competitively to meet this shift, and that such advertising formats, strategies, and offerings will be successful.”
Moreover, Google has been able to fend off concerns that AI will cannibalize its search and ads business. Ad revenue in the fourth quarter surged 13.5 percent from the previous year, up to $82.28 billion.
