Alphabet looks to raise up to $25 billion from latest bond sale, source says

Aug. 6 (Reuters) - Alphabet is looking to raise between $20 billion and $25 billion from its latest U.S. bond offering, a source familiar with the matter said on Thursday, weeks after the tech giant's 2026 capital spending outlook triggered a steep selloff.

The company is offering notes in as many as 10 parts, a regulatory filing showed. The maturities on the notes range from two to 40 years, according to Bloomberg News, which first reported the size of the offering.

Reuters could not immediately verify details on the maturities. Alphabet did not comment on the size of the offering and maturities.

The debt raise is the latest in a series of moves by tech giants looking to fund their costly AI spending, a shift in strategy for these companies that have typically relied on their large cash reserves to fund investments.

Hyperscalers Amazon, Alphabet, Meta and Oracle issued about $194 billion worth of bonds in 2026 through July 7, up 79% from roughly $108 billion in 2025, a Reuters analysis of LSEG data showed last month.

Big Tech is expected to spend more than $730 billion this year primarily on AI, and the massive outlay is already squeezing cash flows. Alphabet late in July posted its first ever negative free cash flow in its second-quarter report.

It 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 in June announced an raise through equity offerings, including an investment from Berkshire Hathaway, and later increased the offering size to nearly due to strong investor appetite.