"Alphabet Inc. is set to raise almost $32 billion in debt in less than 24 hours, showing the enormous funding needs of tech giants competing to build out their artificial intelligence capabilities and the huge appetite from credit markets to fund them. The Google parent followed Monday's $20 billion seven-part dollar debt sale with sterling and Swiss franc-denominated offerings which broke records in both markets."
"Demand was high across the deals, with the US tranches getting more than $100 billion of orders, according to people with knowledge of the matter. The sterling century bond has drawn close to ten times orders for the 1 billion ($1.4 billion) on offer. Such a wide range of maturities in different markets meant there was something for investors of all stripes from asset managers and hedge funds to the pension funds and insurers that favor longer-dated debt."
"The deal hit the market less than a week after Alphabet said its capital expenditures will reach as much as $185 billion this year double what it spent last year to finance its AI ambitions. Software giant Oracle Corp. also recently raised $25 billion to fund its AI plans, drawing $129 billion of demand. Other tech firms, including Meta Platforms Inc. and Microsoft Corp., have announced huge spending plans for 2026."
Alphabet raised almost $32 billion in debt through a $20 billion seven-part dollar sale plus sterling and Swiss franc-denominated offerings that set records. The sterling deal featured an ultra-rare 100-year note, and US tranches attracted more than $100 billion of orders, with the century bond drawing nearly ten times the £1 billion on offer. The broad range of maturities appealed to asset managers, hedge funds, pension funds and insurers. Alphabet projects up to $185 billion in capital expenditures to fund AI. Oracle and other tech firms also raised large funding amid rising hyperscaler borrowing forecasts.
Read at www.mercurynews.com
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