Alphabet Plans First Yen Bond as AI Investment Push Drives Global Borrowing Expansion

Mintesinot Niggusie

Alphabet Inc. is preparing to issue yen-denominated bonds for the first time as it accelerates fundraising across global debt markets to support rising investment in artificial intelligence.

Alphabet Inc. has expanded its capital expenditure outlook to as much as 190 billion US dollars this year, up from a previous estimate of 185 billion US dollars, reflecting a sharp increase in spending tied to AI infrastructure and related technologies.

The company’s funding strategy has recently included a series of large international debt sales. Last week, Alphabet raised nearly 17 billion US dollars through its biggest-ever euro-denominated bonds and its first Canadian dollar notes. These transactions followed earlier issuances in sterling and Swiss franc markets.

The planned yen-denominated deal would mark Alphabet’s debut in Japan’s bond market and is expected to be structured as a benchmark SEC-registered issuance of fixed-rate senior unsecured notes. The timing of the sale will depend on market conditions.

Google remains central to the company’s expanding artificial intelligence investment strategy, as Alphabet increases infrastructure spending to compete in a rapidly intensifying global AI sector.

For the potential yen bond transaction, Alphabet has appointed BofA Securities Inc., Mizuho Securities Co. and Morgan Stanley to arrange the fixed-rate senior unsecured issuance, according to a person familiar with the matter.

The company’s broader borrowing expansion comes as technology firms continue to compete for computing capacity and data centre development linked to artificial intelligence, with peers such as Nvidia Corp. also playing a central role in the sector.