Sundar Pichai-led Alphabet is reportedly looking to raise between USD 20 billion and USD 25 billion from its latest US bond offering, weeks after the tech giant’s 2026 capital spending outlook triggered a steep stock selloff.
The company is offering notes in as many as 10 parts, a regulatory filing showed. The maturities on the notes, as per Bloomberg, range from two to 40 years.
Through the debt raise, Alphabet will be joining the bandwagon of tech giants looking to fund their costly AI spending, a strategy shift in which the “Big Tech” is now looking beyond their large cash reserves to fund investments.
Hyperscalers Amazon, Alphabet, Meta and Oracle issued about USD 194 billion worth of bonds in 2026 through July 7, up 79% from roughly USD 108 billion in 2025, a Reuters analysis of LSEG data showed in July.
Big Tech is expected to spend more than USD 730 billion this year primarily on AI, and the massive outlay is already squeezing their cash flows, despite healthy profit booking. Alphabet, in July, posted its first ever negative free cash flow in its second-quarter report.
The Sundar Pichai-headed tech firm also raised its annual capital expenditure forecast for the second time this year, fanning fears over the pace of returns on its AI investments, especially as concerns mount over delays to its flagship AI model.
Alphabet, a couple of months back, announced an USD 80 billion raise through equity offerings, including an investment from Berkshire Hathaway. It subsequently increased the offering size to nearly USD 85 billion due to strong investor appetite.
The Google parent has also sold bonds in Japanese yen, Swiss francs and British pounds, including a rare 100-year bond earlier in 2026.
Despite investor worries about the pace of returns on Big Tech’s AI investments, Alphabet has doubled down on the technology. It has already announced a leadership overhaul of its AI division, with chief Demis Hassabis leaving his main managerial role and several leaders of its Gemini model, including veteran engineer Jeff Dean, departing the company.
The division has been handling the R&D work of “Google DeepMind”, the flagship version of the search engine giant’s latest Gemini model. The tool has remained unreleased despite a planned June launch, sparking investor and industry concerns that Google is falling behind its rivals Anthropic and OpenAI.
Hassabis, a Nobel Prize recipient, will take the newly created title of Alphabet’s chief scientist and transition from being Google DeepMind CEO to being its chairman. Hassabis, in a memo to staff, cited the closeness of artificial general intelligence (AGI), an advanced state of AI in which computers become as smart as humans, as the impetus for his role change.
Koray Kavukcuoglu, the unit’s chief technology officer, will assume day-to-day responsibilities. He will hold the title of senior vice president, rather than CEO, of the business unit, in addition to his role as Alphabet’s chief AI architect.