Alphabet is returning to Europe’s debt markets for the second time this year with a bond sale of at least €3 billion to fund its record capital spending on artificial intelligence infrastructure.
The Google parent is marketing six euro-denominated benchmark tranches ranging from 3 to 39 years, reports Bloomberg. The three-year tranche is being sold at around 60 basis points over mid-swaps, while the longest 39-year tranche is marketed at approximately 190 basis points.
This marks Alphabet’s second visit to the euro market in 2025, following its €6.75 billion debut earlier this year. The bond sale follows a broader pattern of technology companies raising funds for AI investments, with Meta Platforms selling $30 billion of corporate bonds last week in the biggest US dollar offering of the year.
The fundraising comes as AI companies face mounting questions about whether massive infrastructure spending will generate returns. As previously reported, artificial intelligence companies are responsible for 80 per cent of US stock gains this year, fuelling fears the market is in a speculative bubble, with nearly 8 in 10 businesses using generative AI reporting no significant bottom-line impact.
OpenAI eyes $1-trillion IPO
Meta has committed $600 billion to AI infrastructure over the next three years, whilst Amazon plans to spend $100 billion on AI data centres. OpenAI is also preparing for a potential initial public offering that could value the company at up to $1 trillion, as theFreesheet reported, with the company considering filing with securities regulators as soon as the second half of 2026.
The company reported surging demand for its cloud and artificial intelligence services last quarter, with third-quarter sales rising to $87.5 billion. Alphabet is investing record amounts to advance AI development, with capital expenditures expected to reach $91 billion to $93 billion this year.
Revenue from products built on Google’s generative AI models grew more than 200 per cent from a year earlier. The proceeds will be used for general corporate purposes, according to people familiar with the matter. Alphabet is rated Aa2 by Moody’s and AA+ by S&P.
Goldman Sachs, HSBC and JPMorgan are joint global coordinators and joint bookrunners for the transaction, whilst BNP Paribas, Crédit Agricole CIB and Deutsche Bank are also joint bookrunners.
