$GOOGL
Alphabet Is Borrowing More to Fund the AI Race 💰
Alphabet is preparing its first-ever Australian dollar bond sale, hiring major banks to arrange the deal. The company is considering 3-, 5-, 10- and 20-year maturities, although it hasn't disclosed how much it plans to raise.
The timing is interesting. Alphabet just issued $25 billion of U.S. dollar bonds earlier this month as Big Tech ramps up spending on AI infrastructure.
That spending is getting huge. Industry AI investment is expected to exceed $730 billion this year, putting pressure on even the biggest tech companies' cash flows.
Alphabet reported negative free cash flow in the second quarter for the first time, making the new borrowing especially notable. The AI boom is still attracting enormous capital — but increasingly, some of that money is coming from debt markets. 🤖
Alphabet Is Borrowing More to Fund the AI Race 💰
Alphabet is preparing its first-ever Australian dollar bond sale, hiring major banks to arrange the deal. The company is considering 3-, 5-, 10- and 20-year maturities, although it hasn't disclosed how much it plans to raise.
The timing is interesting. Alphabet just issued $25 billion of U.S. dollar bonds earlier this month as Big Tech ramps up spending on AI infrastructure.
That spending is getting huge. Industry AI investment is expected to exceed $730 billion this year, putting pressure on even the biggest tech companies' cash flows.
Alphabet reported negative free cash flow in the second quarter for the first time, making the new borrowing especially notable. The AI boom is still attracting enormous capital — but increasingly, some of that money is coming from debt markets. 🤖