This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) is considering issuing Japanese yen denominated bonds for the first time as the company seeks additional funding sources to support growing artificial intelligence investments.
According to Reuters, the potential offering could include senior unsecured yen bonds and would depend on market conditions. Alphabet has reportedly selected Mizuho, Bank of America and Morgan Stanley to work on the transaction.
The move would diversify Alphabet’s funding strategy as spending on AI infrastructure, data centers and cloud computing continues to rise across the technology industry.
The company recently raised nearly $17 billion through separate euro and Canadian dollar bond offerings. Alphabet also increased its annual capital expenditure forecast to between $180 billion and $190 billion as competition in AI intensifies.
For investors, the planned yen bond sale signals Alphabet’s willingness to secure lower-cost international financing while maintaining aggressive AI expansion plans. Despite rising spending, the company’s balance sheet remains one of the strongest in the technology sector.
