Alphabet Plans Bond Sale to Fund AI Expansion

This article first appeared on GuruFocus.

Alphabet Inc. (GOOGL, Financials) said that it will use the bond market to get money for its artificial intelligence infrastructure buildout. The business didn’t say how much it wants to raise, but this move is in line with other initiatives in the tech sector to fund huge AI-driven growth.Alphabet, like Amazon and Microsoft, is spending a lot more money on capital projects to match the growing demand for AI computing capacity. The company’s quarterly report showed that its capital expenditures were greater than projected. Analysts think that AI investment across the board might reach $700 billion by 2026.The money from the bond sale will go toward new data centers, sophisticated semiconductors, and large-scale model training platforms. These are all important parts of Alphabet’s AI ecosystem, which includes Google Cloud and Gemini.The bond offering comes after a number of other big companies have done the same thing to lock in financing at good rates before interest rates may change. When Alphabet goes back to the debt markets, investors will be very interested in the details of the pricing and credit demand.The news shows how AI infrastructure has become a key factor in how corporations with a lot of wealth decide where to put their money.