Alphabet Inc. is issuing bonds in the US high-grade bond market, including a long-dated note maturing in 2066. Initial price discussions for the longest bond are approximately 1.2 percentage points above US Treasuries. This move is driven by the AI spending boom, with major players expected to invest over $650 billion in AI infrastructure this year.

Alphabet is preparing for potential Swiss franc and sterling bond sales, including a rare 100-year bond. The company recently announced plans to spend up to $185 billion in 2026, exceeding previous forecasts. Fourth-quarter earnings also surpassed analyst expectations. Alphabet last issued US bonds in November, raising $17.5 billion.

Overall, capital expenditure on AI, cloud computing, and data centers is projected to reach $3 trillion by 2029. This underscores why Big Tech companies are turning to debt markets to fund the next phase of the AI boom. Despite concerns about a possible AI spending bubble, investors have easily absorbed the influx of debt into the bond market.

Read more at Nasdaq: Alphabet Raises Debt As AI Spending Drives Corporate Borrowing