Alphabet Inc. is considering its first-ever issuance of yen-denominated senior unsecured notes to fund artificial intelligence development. Mizuho Bank, Bank of America, and Morgan Stanley are managing the potential debt offering.
The company plans to use the proceeds for general corporate purposes, including debt repayment and capital expenditures for AI infrastructure. These investments support Alphabet's proprietary Tensor Processing Unit (TPU) chips and the Gemini AI model.
Analysts estimate that AI spending by major technology companies could surpass $700 billion in 2026. Alphabet shares declined following the news of the potential bond sale.