Alphabet Inc., the parent company of Google, announced plans to issue its first bond denominated in Japanese yen, as major technology companies increasingly turn to international debt markets to fund the soaring costs of artificial intelligence infrastructure. The move comes alongside Amazon’s preparations for an inaugural Swiss franc bond sale, highlighting a broader financing shift among U.S. tech giants seeking capital outside domestic markets.
The step is driven by the rapid expansion of AI investment across the industry. Analysts expect large technology firms to collectively spend at least $700 billion on AI-related infrastructure this year, a significant jump from an estimated $410 billion in 2023. As spending requirements grow, companies that once relied heavily on internal cash reserves are increasingly using borrowing to fund expansion.
Neither Alphabet nor Amazon disclosed the size of their planned offerings. However, a person familiar with Alphabet’s plans said the yen-denominated issue could amount to hundreds of billions of yen. Details are expected to be finalized later this month, the source said. Alphabet has selected several major financial institutions to manage the transaction, including Bank of America, Morgan Stanley, and Mizuho.
Market analysts suggest the decision to raise funds internationally reflects both the enormous financing needs of leading technology companies and the strong investor confidence they command. Alphabet has been active in bond markets recently. Last week, the company secured almost $17 billion via two different bond transactions, including a €9 billion issue (equivalent to roughly $10.6 billion) and an C$8.5 billion sale valued at about $6.2 billion.
Amazon also confirmed new borrowing plans. A company spokesperson said proceeds from the Swiss franc offering will support general corporate operations and may help finance future investments and long-term spending plans. A person with knowledge of the matter said Amazon has appointed several banks to oversee the transaction, including JPMorgan Chase, BNP Paribas, and Deutsche Bank. The planned debt sale is expected to include six separate parts, with repayment periods ranging from three to 25 years.
The shift toward international bond markets illustrates how the race to dominate AI is changing not only business priorities but also how Silicon Valley’s largest players finance their ambitions. As AI systems become more advanced, companies like Datavault AI Inc. (NASDAQ: DVLT) are likely to develop even more sophisticated AI-powered solutions to meet evolving client needs.