Alphabet raised $20 billion through a corporate bond sale to fund its aggressive expansion in AI hardware, data centres and cloud infrastructure.
The bond issue drew strong investor demand of over $100 billion, allowing Alphabet to borrow at lower-than-expected interest rates amid a broader Big Tech borrowing spree.
The fundraise supports Alphabet's sharply higher capital spending plans as it reported strong growth in Cloud and overall revenue in the latest quarter.
Google parent Alphabet has rasied $20 billion via corporate bond sale on Monday. The fund is expected to help finance its massive spending plans including the buildout of artificial intelligence (AI) infrastructure. The sale was reported by Bloomberg and other US media outlets.
The US news agency claimed that the 40-year bonds were sold at cheaper interest rate than expected as order worth more than $100 billion poured in from investors. Alphabet only had to pay 0.95 percentage point more than the yields on US treasuries of the same tenure. Investors had expected it to pay 1.2 percentage points more than US government bonds.
3 February 2026
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The $20 billion corproate bond, as per a report by International Financing Review (IFR), was sold in a seven part series.
IFR also claimed that the Big Tech is also planning a sale of sterling bonds for the first time, which is expected to include a rare 100-year note. The company is also planning to raise money in Swiss franc as part of its corporate bond sale.
Alphabet is doing so to ramp up its investment in AI hardware and data centres, significantly stepping up spending on infrastructure upgrades. It has also doubled its capital expenditure for the year.
Notably, the deal follows the recent borrowing-spree by major tech companies in a bid to expand their data centre presence and processor needs. Recently, Oracle also sold $25-billion bonds, while the company alongside Amazon, Google, Meta and Microsoft issued $121 billion in US corporate bonds last year, as per BofA Securities.
This surge may turn risky in future as per experts warning in earlier reports. They had claimed that heavy borrowing by so many companies may push up bond interest rates and make future fund-raising more expensive.
In it's part, Google has laid out multiple data centre projects in several countries. Last year, Google Cloud CEO Thomas Kurian had said that the company has laid out a global network of AI centres in 12 different countries.
The company has commited for an investment worth $15-billion for building a major AI data centre in Andhra Pradesh, aimed at creating a 1 GW campus, according to Kurian. The investment plan is spread over a period of five years.
Additionally, Google is spending $4.75 billion to acquire Intersect Power projects to secure renewable energy for its data centres, becoming the only tech giant to directly own a power developer, The Wall Street Journal earlier reported.
The deal is expected to close this year, allowing Google to directly control energy generation, primarily in Texas and California, to power data centres faster, with Intersect's projects expected to deliver nearly 10.8 GW by 2028.
In late 2025, the company had also commited for a potential $40 billion investment in Texas-based data centre infrastructure, according another report by Bloomberg.
Alphabet in its Q4 FY26 earnings increased its capex spend in the range of $175 billion to $185 billion, nearly double its 2025 spend. During the Q2 earnings, Google had said that it would spend $85 billion in 2025 due to strong and growing demand for Cloud products and services.
Notably, it reported an 18% jump in the revenue in its latest quarter. The quarterly revenue rose to $113.8 billion, taking full-year revenue past the $400 billion mark. A 48% surge in Google Cloud revenues drove this performance.
Google Cloud saw a continued increase in customer demand as revenue increased 48% to $17.7 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Infrastructure and enterprise AI Solutions, as well as core GCP products.
