Alphabet and Amazon Tap International Bond Markets to Fund AI Investments
Alphabet plans to issue yen-denominated bonds and Amazon prepares a Swiss franc debt sale, reflecting a shift among U.S. tech giants to raise capital overseas for massive AI infrastructure spending.
Alphabet Inc., the parent company of Google, announced plans to issue its first bond denominated in Japanese yen, while Amazon.com Inc. is moving forward with an inaugural debt sale in Swiss francs, signaling a broader financing shift among U.S. technology giants as they pour billions into artificial intelligence infrastructure. The moves come as analysts project that large technology firms will collectively spend at least $700 billion on AI-related infrastructure this year, up from an estimated $410 billion in 2024.
Neither Alphabet nor Amazon disclosed the size of their planned offerings. However, a person familiar with Alphabet's plans said the yen-denominated issue could amount to hundreds of billions of yen, with details expected to be finalized later this month. Alphabet has reportedly selected Bank of America, Morgan Stanley, and Mizuho to manage the transaction. The company has been active in bond markets recently, securing almost $17 billion last week through two separate transactions: a €9 billion issue (roughly $10.6 billion) and a C$8.5 billion sale (about $6.2 billion).
Amazon confirmed its borrowing plans, with a spokesperson stating that proceeds from the Swiss franc offering will support general corporate operations and may help finance future investments and long-term spending. A person with knowledge of the matter said Amazon has appointed JPMorgan Chase, BNP Paribas, and Deutsche Bank to oversee the transaction. The planned debt sale is expected to include six parts, with repayment periods ranging from three to 25 years.
Market analysts suggest the decision to raise funds internationally reflects both the enormous financing needs of leading technology companies and the strong investor confidence they command. As spending requirements grow, companies that once relied heavily on internal cash reserves are increasingly turning to borrowing. The shift toward international bond markets illustrates how the race to dominate AI is changing not only business priorities but also how Silicon Valley's largest players finance their ambitions.
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