Alphabet Inc., the parent company of Google, is set to raise around €6.25 billion ($7.2 billion) in the European debt market, marking another major tech-sector bond issuance amid an industry-wide race to invest in artificial intelligence.
The latest sale comes on the heels of Meta Platforms Inc.’s $30 billion debt offering, the largest so far this year, and follows Alphabet’s strong quarterly results showing robust growth in its cloud computing and AI businesses.
According to sources familiar with the deal, Alphabet is marketing six euro-denominated tranches of bonds with maturities ranging from three to 39 years. This marks the company’s second euro bond issue of 2025, following its €6.75 billion debut in April, as it continues diversifying funding sources beyond the US dollar market.
Rising AI-Driven Capital Needs
Technology giants are increasingly turning to bond markets to fund massive infrastructure spending aimed at powering the next generation of AI systems. Analysts at Morgan Stanley estimate that major cloud players — often called “hyperscalers” — are likely to invest around $3 trillion in data centers and digital infrastructure between now and 2028, with roughly half funded through internal cash flows.
Alphabet recently reported a sharp increase in demand for AI and cloud services, with third-quarter revenue reaching $87.5 billion. The company expects capital expenditures to total $91–93 billion in 2025, reflecting record investments in AI infrastructure and data capacity.
Deal Details
Proceeds from the bond issue — and any concurrent dollar-denominated offering — will go toward general corporate purposes, according to people aware of the transaction.
The three-year tranche is being marketed at a 25-basis-point spread over mid-swaps, while the 39-year bonds will be priced at 158 basis points above the benchmark rate, making it the longest-dated public euro bond issued in Europe this year.
Alphabet carries strong investment-grade credit ratings of Aa2 (Moody’s) and AA+ (S&P).
The deal is being managed by Goldman Sachs, HSBC, and JPMorgan as joint global coordinators and bookrunners, with BNP Paribas, Crédit Agricole CIB, and Deutsche Bank also acting as joint bookrunners. Pricing is expected to be finalized later today.
