Alphabet kicks off Australian dollar bond sale as AI spending soars

Alphabet has launched its first Australian dollar bond sale, aiming to raise approximately A$5 billion (US$3.6 billion) as part of its multi-billion dollar fundraising efforts, driven by a surge in AI spending. The tech giant is offering the debt in four different maturities, with one option reaching up to 20 years in duration. According to an emailed statement from Australia & New Zealand Banking Group, a participating bank in the deal, Alphabet seeks to raise A$5 billion in total, as reported by individuals familiar with the matter.

Earlier this month, Alphabet had raised its capital spending forecast to potentially reach US$205 billion for the year, sparking debates about how Big Tech plans to recoup profits from their substantial investments in artificial intelligence. So far this year, Alphabet has emerged as the largest US corporation to tap into global debt markets, amassing tens of billions of dollars for AI-related projects.

Beyond the US market, Google's parent company has also issued bonds in Swiss francs, British pounds, euros, Canadian dollars, and Japanese yen throughout 2026. The Australian dollar bond market is attracting significant interest from global treasurers, with issuance by overseas borrowers reaching a record pace this year. The market is benefiting from heightened demand from both foreign and local investors, enabling firms to price larger and longer-term deals more easily.