Cloud computing companies known as “hyperscalers” are expected to collectively invest more than $630 billion this year, much of it in AI, even as returns have lagged the pace of spending growth.
Alphabet did not immediately respond to a Reuters request for comment. Reuters could not independently verify the report.
The Google parent company is selling bonds in as many as seven installments, according to regulatory filings, which did not disclose the size of the sale.
Initial price discussions for the longest part of the deal – a bond maturing in 2066 – come at a premium of about 1.2 percentage points over Treasuries, the Bloomberg report said.
Pent-up mergers and acquisitions and companies’ efforts to refinance existing debt are expected to boost total corporate bond issuance this year, but the biggest driver will be borrowing to finance AI-related investments, according to a report from Barclays. The big five AI hyperscalers — Amazon, Alphabet’s Google, Meta Microsoft and Oracle — issued $121 billion in U.S. corporate bonds last year, compared with an average of $28 billion annually between 2020 and 2024, according to a Jan. 9 report from BofA Securities.
Oracle sought $18 billion in new debt in September, while Meta raised $30 billion in October, the largest single sale of high-quality non-M&A bonds ever.
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