Alphabet considers first yen bond sale to fund AI goals

A sign is displayed on a Google building at their campus in Mountain View, Calif. (AP Photo/Jeff Chiu, File)

Alphabet plans to sell Japanese yen-denominated bonds for the first time, it disclosed in a filing on Monday, as technology giants tap debt markets to fund artificial intelligence infrastructure deployments.

The Google parent did not disclose the size of the offering. The issuance is expected to total several hundred billion yen, said a source with direct knowledge of the deal, adding that the terms are expected to be decided this month.

The person was not authorized to speak on the matter and declined to be identified. Alphabet did not immediately respond to a Reuters request on the offering size.

Alphabet has mandated Mizuho, Bank of America and Morgan Stanley to work on the transaction.

Morgan Stanley did not immediately respond to a request for comment, while Bank of America and Mizuho declined to comment.

The world’s largest technology companies are tapping debt markets to fund costly artificial intelligence ambitions, in a shift from Silicon Valley’s traditional reliance on cash for investments.

Big Tech is expected to spend more than US$700 billion on AI infrastructure this year, a sharp increase from $410 billion in 2025.

Meanwhile, Amazon is preparing to issue Swiss franc bonds for the first time, a person familiar with the matter said, declining to be named as the matter was private.

The e-commerce giant has mandated banks, including BNP Paribas, Deutsche Bank and JPMorgan Chase, for a debt offering in six parts, with maturity ranging from three to 25 years, the person said.

Amazon, BNP Paribas and JPMorgan Chase did not immediately respond to Reuters requests for comment.

Alphabet’s yen bond sale would be its first issuance in the Japanese currency, according to LSEG data. It had last week raised almost US$17 billion through two bond sales - a 9 billion euro ($10.6 billion) issue and a $6.2 billion issue, according to the company’s filings.

In late April, it raised its annual capital spending forecast by $5 ‌billion to between $180 billion and $190 billion, and said it was planning another significant increase in 2027.

(Reporting by Miho Uranaka in Tokyo, additional reporting by Anhata Rooprai in Bengaluru; Writing by Scott Murdoch; Editing by Edwina Gibbs and Arun Koyyur)