Alphabet Launches $185 Billion AI War Chest Via Seven-Part Bond Sale
Alphabet (GOOGL) is doubling down on artificial intelligence with its first bond sale of 2024—a seven-part offering designed to fund a record $185 billion spending spree. The Google parent is offering roughly 1.2 percentage points over Treasury yields on its longest-dated notes to attract investors, with proceeds split between data center construction (40%) and cutting-edge AI hardware (60%).
Sources indicate parallel debt offerings in Swiss francs and sterling, including a rare 100-year tranche. This follows Alphabet's aggressive capital expenditure ramp-up despite recent stock volatility tied to AI bubble concerns. Analysts remain bullish, citing untapped potential in cloud and AI revenue streams.