Alphabet is planning its first yen bond sale to fund AI expansion, reflecting how major technology companies are increasingly turning to global capital markets to support rising investments in artificial intelligence and infrastructure growth. The proposed issuance would mark Alphabet’s first bond sale denominated in Japanese yen, according to LSEG data.
Alphabet plans to issue Japanese yen-denominated bonds for the first time, as the technology giant seeks additional funding for its rapidly expanding ambitions in artificial intelligence infrastructure.
Reuters reported that the offering is expected to total several hundred billion yen, with terms likely to be finalized. Alphabet has appointed Mizuho Financial Group, Bank of America and Morgan Stanley to manage the transaction.
Last month, Alphabet raised its annual capital expenditure forecast by US$5 billion (approx. $7 billion) to a range of US$180 billion (approx. $250.9 billion) to US$190 billion (approx. $264.9 billion) and indicated that spending would increase further in 2027.
The company has already tapped international debt markets multiple times this year. According to filings, Alphabet raised nearly US$17 billion (approx. $23.7 billion) last week through two separate offerings, including a €9 billion (approx. $14.4 billion) bond issue and an $8.5 billion transaction.
The offering highlights how major technology companies are increasingly turning to debt markets to finance the escalating costs associated with artificial intelligence infrastructure. Historically, large Silicon Valley firms relied heavily on cash reserves to fund expansion and acquisitions. However, the scale of current AI investment requirements has prompted even the world’s largest technology companies to raise external capital.
Industry estimates suggest Big Tech companies will spend more than US$700 billion (approx. $975.8 billion) on AI infrastructure this year, sharply higher than the roughly US$410 billion (approx. $571.5 billion) invested in 2025.
Investor sentiment around Alphabet has shifted dramatically over the past year as the company has emerged as one of the strongest perceived beneficiaries of the AI boom.
Last week, Alphabet briefly overtook Nvidia in market capitalization during after-hours trading. Alphabet ended the week with a market capitalization of around US$4.8 trillion (approx. $6.7 trillion), trailing only Nvidia, which had a market capitalization of roughly US$5.2 trillion (approx. $7.2 trillion).
Alphabet stock has gained roughly 160% over the past 12 months, supported by growing confidence in the company's positioning across multiple areas of artificial intelligence.
The move followed reports that AI startup Anthropic had committed to spending US$200 billion (approximately $278.8 billion) on Google Cloud infrastructure over five years to access 5 gigawatts of computing capacity.
The rally reflects Wall Street’s growing view that Alphabet is uniquely positioned across several critical layers of the AI ecosystem.
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The company operates its Gemini and DeepMind AI platforms, owns one of the world’s largest cloud computing businesses, develops its own tensor processing units as alternatives to Nvidia’s chips, and has extensive distribution channels through products such as Search, YouTube, and Android.
This broad exposure has strengthened investor confidence that Alphabet can monetize artificial intelligence across multiple business segments rather than relying on a single revenue stream. 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.