Alphabet (GOOGL) plans to issue Japanese yen-denominated bonds for the first time as the technology giant seeks additional funding for its rapidly expanding artificial intelligence infrastructure ambitions.
According to a filing on Monday, the Google parent company intends to launch the bond offering in Japan, although it did not disclose the size of the issuance.
Reuters reported, citing sources, that the offering is expected to total several hundred billion yen, with terms likely to be finalised later this month.
Alphabet has appointed Mizuho Financial Group, Bank of America and Morgan Stanley to manage the transaction.
The proposed issuance would mark Alphabet’s first bond sale denominated in Japanese yen, according to LSEG data.
Tech giants turn to debt markets for AI spending
The offering highlights how major technology companies are increasingly turning to debt markets to finance the escalating costs associated with artificial intelligence infrastructure.
Historically, large Silicon Valley firms relied heavily on cash reserves to fund expansion and acquisitions.
However, the scale of current AI investment requirements has prompted even the world’s largest technology companies to raise external capital.
Industry estimates suggest Big Tech companies are expected to spend more than $700 billion on AI infrastructure this year, sharply higher than the roughly $410 billion invested in 2025.
Alphabet has been among the most aggressive spenders.
Last month, the company raised its annual capital expenditure forecast by $5 billion to a range of $180 billion to $190 billion and indicated that spending would increase further in 2027.
The company has already tapped international debt markets multiple times this year.
According to filings, Alphabet raised nearly $17 billion last week through two separate offerings, including a €9 billion (approx. $10.3 billion) bond issue and a CA$8.5 billion (approx. US$6.1 billion) transaction.
AI momentum reshapes investor perception
Investor sentiment around Alphabet has shifted dramatically over the past year as the company has emerged as one of the strongest perceived beneficiaries of the AI boom.
Last week, Alphabet briefly overtook Nvidia in market capitalisation during after-hours trading.
Alphabet ended the week with a market capitalisation of around $4.8 trillion, trailing only Nvidia at roughly $5.2 trillion.
Alphabet stock has gained roughly 160% over the past 12 months, supported by growing confidence in the company’s positioning across multiple areas of artificial intelligence.
The move followed reports that AI startup Anthropic had committed to spending $200 billion on Google Cloud infrastructure over five years for access to 5 gigawatts of computing capacity.
The rally reflects Wall Street’s growing view that Alphabet is uniquely positioned across several critical layers of the AI ecosystem.
The company operates its Gemini and DeepMind AI platforms, owns one of the world’s largest cloud computing businesses, develops its own tensor processing units as alternatives to Nvidia’s chips, and has extensive distribution channels through products such as Search, YouTube and Android.
That broad exposure has increasingly strengthened investor confidence that Alphabet can monetise artificial intelligence across multiple business segments rather than relying on a single revenue stream.
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