The tech giant will issue yen-denominated bonds across eight maturities to support record artificial intelligence infrastructure spending.
Alphabet is launching its first yen-denominated bond sale, spanning up to eight maturities from three to forty years. The offering, expected to total several hundred billion yen, aims to diversify funding sources for its $190 billion capital expenditure plan this year, primarily targeting AI infrastructure.
The company’s capex surged to $12 billion in Q1, doubling year-on-year, as Big Tech ramps up AI investments. Industry-wide spending on AI infrastructure is projected to reach $700 billion in 2025, up from $410 billion this year. Alphabet has previously issued bonds in euros, sterling, and other currencies but has not tapped the yen market until now.
Mizuho, Bank of America, and Morgan Stanley are managing the transaction, which follows Amazon’s recent move into Swiss franc-denominated debt. The issuance reflects growing reliance on global debt markets to fund escalating AI costs.