Alphabet Stock In Spotlight — Launches $185B Debt Sale as AI Spending Soars

This article first appeared on GuruFocus.

Alphabet, the parent of Google (NASDAQ:GOOGL) stock is in focus on Monday after it moved into the U.S. debt market with a seven-part bond offering as it steps up spending tied to artificial intelligence.

Shares of Google rose in premarket trading, but traded flat on the opening bell after the company outlined plans to use the proceeds to support a sharp increase in capital expenditures this year.

Alphabet said it expects capital spending to reach about $185 billion in 2026, nearly double the prior year’s level. The investment centers on artificial intelligence infrastructure as demand for computing power continues to rise.

The bond sale includes multiple maturities, with the longest notes extending into the mid-2060s. Alphabet is offering a premium over comparable U.S. Treasury yields to attract investors.

The company said roughly 40% of planned spending will go toward building data centers and network capacity, while the remainder will fund servers and specialized AI chips.

Other large technology companies are also leaning on debt markets. Oracle (ORCL) recently completed a large bond offering, while Amazon (AMZN), Microsoft (MSFT), and Meta (META) continue to invest heavily in AI infrastructure.

Alphabet said growth in its cloud business, supported by AI services, helped underpin the expanded investment plans.