Alphabet to sell at least €3B bonds to fuel AI expansion - report

[Google Announces EUR 1 Billion Investment In Germany, Including Renewable Energies]
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Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) is returning to Europe’s bond market for the second time this year with a multi-tranche euro offering to help fund record spending on artificial intelligence and cloud infrastructure.

The Google parent is marketing six euro-denominated benchmark tranches, ranging from three to 39 years, for a total expected sale of at least €3 billion ($3.5 billion), Bloomberg reported, citing a person familiar with the deal. The three-year notes are being offered at about 60 basis points over mid-swaps, while the longest tranche is near 190 basis points.

Proceeds will go toward general corporate purposes. Goldman Sachs, HSBC, and JPMorgan are joint global coordinators and bookrunners, alongside BNP Paribas, Crédit Agricole CIB, and Deutsche Bank. Pricing is expected later today.

The offering follows Alphabet’s €6.75 billion debut euro bond sale earlier this year, part of a broader effort by U.S. tech firms to diversify funding sources as they ramp up AI-related investments. Last week, Meta Platforms raised $30 billion in the year’s largest U.S. dollar bond sale.

Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) recently reported third-quarter revenue of $102.3 billion, driven by surging demand for cloud and AI services. The company expects 2025 capital expenditures of $91–93 billion, ahead of the over $84B that analysts expected.

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