Alphabet to sell $3.5b bonds in Europe to fund AI, cloud
- ByStartupStory | November 4, 2025
Alphabet to Raise $3.5 Billion in European Bond Sale to Fund AI and Cloud Expansion
Alphabet Inc., the technology conglomerate behind Google, is returning to the European debt market with plans to issue at least €3 billion (approximately $3.5 billion) in multi-tranche euro-denominated bonds. This marks Alphabet’s second bond sale in Europe in 2025 following a €6.75 billion issuance earlier this year, reinforcing the company’s strategy to diversify funding sources beyond U.S. dollars.
The bonds, maturing in staggered tranches ranging from three to 39 years, are being marketed with initial pricing guidance suggesting competitive yields relative to mid-swaps, reflecting Alphabet’s strong credit ratings of Aa2/AA+. Joint global coordinators and bookrunners for the offering include Goldman Sachs, HSBC, and JPMorgan, with BNP Paribas, Crédit Agricole CIB, and Deutsche Bank also participating as joint bookrunners.
The proceeds from this debt sale will support Alphabet’s unprecedented capital expenditure plans, which are projected to reach $91–93 billion in 2025. This investment surge is largely fueled by the company’s aggressive development of artificial intelligence (AI) and cloud infrastructure, critical to maintaining competitive advantages in data center scale, AI-powered services like Google’s Gemini, and expanding cloud market share.
Alphabet’s third-quarter revenue reached $87.5 billion, with AI-driven products contributing to more than 200% year-over-year growth. The bond issuance underpins efforts to accelerate AI capabilities, improve global data infrastructure, and sustain the rapid rollout of new AI services.
This fundraising effort typifies a broader trend among technology giants such as Meta, Amazon, and Microsoft, collectively raising tens of billions of dollars through debt issuance to finance AI and cloud innovation. Analysts note this wave of capital raising underscores the capital-intensive nature of AI infrastructure and the strategic importance placed by tech leaders on maintaining technology leadership.
In conclusion, Alphabet’s planned $3.5 billion euro bond issuance reiterates its commitment to driving AI and cloud growth through significant capital investments. By accessing global capital markets, Alphabet fortifies its position to lead innovation in an AI-driven future, contributing to sustained financial strength and technological advancement.
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