Alphabet is raising $20 billion through a US dollar bond offering as part of an aggressive global financing strategy to support its artificial intelligence ambitions. The Google parent is also exploring its first-ever bond sales in Switzerland and the UK, including a rare 100-year bond that would mark the first such tech offering since the late 1990s dotcom era. This follows the company's announcement of up to $185 billion in capital expenditures for 2026, exceeding its total spending over the past three years combined.

Alphabet's massive investment in data centers and AI infrastructure is already showing returns, with the company reporting that AI is driving increased online search activity. The tech giant joins other major players like Amazon, Meta, and Microsoft in forecasting combined capital expenditures of approximately $650 billion in 2026. This spending surge has created a financing boom in the bond market, with Oracle recently raising $25 billion in a record-breaking offering that attracted $129 billion in orders.

The unprecedented borrowing spree is expected to push high-grade debt issuance to a record $2.25 trillion this year, according to Morgan Stanley. While some credit strategists warn that the massive issuance could widen corporate bond spreads, they don't anticipate a credit crisis similar to past market disruptions. The company's latest US dollar bond sale has already drawn over $100 billion in orders across as many as seven tranches.

Quick Fact: Alphabet's US bond sale attracted more than $100 billion in orders.