Alphabet Inc., the parent company of Google, has unveiled plans to issue its first bond denominated in the Japanese yen, joining a growing list of U.S. technology giants tapping overseas debt markets to finance the escalating costs of artificial intelligence infrastructure. The move comes as industry-wide AI spending is projected to surge to at least $700 billion this year, up from an estimated $410 billion in the previous year, according to analyst forecasts.
The planned yen-denominated offering could amount to hundreds of billions of yen, according to a person familiar with the matter. Details of the transaction are expected to be finalized later this month. Alphabet has selected several major financial institutions to manage the deal, including Bank of America, Morgan Stanley, and Mizuho.
This marks Alphabet’s continued activity in bond markets. Just last week, the company raised nearly $17 billion through two separate transactions: a €9 billion (approximately $10.6 billion) bond sale and a C$8.5 billion (about $6.2 billion) offering. The yen-denominated issue is Alphabet's first in that currency, signaling a strategic shift to diversify funding sources as capital requirements for AI development grow.
Amazon has also advanced plans for an inaugural debt sale in Swiss francs. An Amazon spokesperson confirmed that proceeds from the Swiss franc offering will support general corporate operations and may finance future investments and long-term spending plans. A person with knowledge of the matter said Amazon has appointed JPMorgan Chase, BNP Paribas, and Deutsche Bank to oversee the transaction. The planned debt sale is expected to include six tranches with repayment periods ranging from three to 25 years.
The shift toward international bond markets illustrates how the race to dominate AI is changing not only business priorities but also how Silicon Valley’s largest players finance their ambitions. Market analysts suggest that the decision to raise funds internationally reflects both the enormous financing needs of leading technology companies and the strong investor confidence they command.
As AI systems become more advanced, companies like Datavault AI Inc. (NASDAQ: DVLT) are likely to develop even more sophisticated AI-powered solutions designed to meet the evolving needs of their client base.
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