US Stocks Today | Is Alphabet’s $20 billion bond sale the start of a record AI debt boom?

Alphabet, the parent company of Google, tapped the U.S. high-grade bond market, raising $20 billion as part of a surge in debt funding by artificial intelligence-focused companies that analysts expect to drive corporate bond issuance to record levels this year, according to Reuters.

The company sold the funds through a seven-part series of senior unsecured notes, based on data from International Financing Review. The move adds to a growing wave of borrowing by major technology firms as they ramp up spending on data centres and advanced processors to support expanding AI operations.

In addition to the U.S. offering, Alphabet is planning a debut sterling bond sale that could include a rare 100-year bond, the Financial Times reported, citing people familiar with the matter.


Monday’s deal follows Oracle’s $25 billion bond sale disclosed on February 2, highlighting how major AI players are increasingly turning to debt markets to fund aggressive capital expenditure plans. Oracle also did not immediately respond to a request for comment.

According to a January report from BofA Securities cited by Reuters, the five major AI hyperscalers — Amazon, Google, Meta, Microsoft and Oracle — issued $121 billion in U.S. corporate bonds last year. Amazon, Meta and Microsoft also did not immediately respond to requests for comment.

Bond issuance from the sector gathered pace in late 2025, with Oracle selling $18 billion in September, followed by Meta’s $30 billion deal in October — the largest-ever individual non-M&A high-grade bond sale. Alphabet raised $17.5 billion in November, while Amazon followed with a $15 billion sale.

Moody’s Ratings estimates that the six largest U.S. hyperscalers are on track to spend a combined $500 billion this year, reflecting the scale of infrastructure investment required to support AI growth.

Barclays analysts project that overall U.S. corporate bond issuance will reach $2.46 trillion in 2026, up nearly 12% from last year. Morgan Stanley estimates hyperscaler bond issuance alone could total $400 billion, helping drive total issuance as high as $2.3 trillion this year.

The heavy borrowing underscores the scale of capital spending underway across the sector, as companies compete to build out AI capacity. The rapid pace of investment has also begun to affect other areas of the market, with pressure emerging on software company valuations following recent developments in AI models and platforms.

Market participants have noted that the shifting AI landscape is forcing widespread reassessment of financial assumptions, as competitive dynamics and cash flow projections are being reworked in response to the accelerating pace of technological change, Reuters said.

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