Big Tech giants like Alphabet and Amazon are on a borrowing sprint, tapping bond investors around the world to help pay for their AI ambitions. They are raising money in foreign currencies at a pace credit strategists say is unprecedented for the sector.
Alphabet and Amazon Head Overseas for Funding
Alphabet, Google’s parent, is preparing its first multi‑tranche yen bond in Japan, according to deal terms cited by Reuters. The sale could raise hundreds of billions of yen across maturities that stretch from a few years to multiple decades. Japanese banks including Mizuho, along with Bank of America and Morgan Stanley, are arranging the deal.
Issuing in yen lets Alphabet lock in relatively low rates in one of the world’s deepest bond markets. The company can also match some of its long‑dated AI and data center spending with long‑dated funding. Executives have already flagged higher capital expenditures this year as they add GPU clusters and upgrade cloud regions for generative AI.
Amazon is taking a similar approach in Europe. It is lining up its first Swiss franc bond, split into multiple tranches aimed at Swiss and continental investors, after already returning to the U.S. dollar market in late 2025. The proceeds will support heavy spending on AWS infrastructure and AI services that run on top of it.
Why AI is Driving a Debt Wave
Running modern AI models is extremely capital‑intensive. Banks and analysts estimate Big Tech could spend $400 billion to more than $700 billion on AI and data center infrastructure this year alone, with total AI‑related investment potentially reaching $4 trillion by 2030. Those needs are starting to outgrow even strong cash flows at firms like Alphabet, Amazon, Microsoft and Meta, so they are leaning more on bonds to fill the gap.
In 2025, hyperscalers such as Amazon, Alphabet, Meta, Microsoft and Oracle together issued roughly $121 billion in new debt to fund AI and data center expansion, according to one credit‑market study. Reuters separately reports that the largest tech firms have recently raised almost $100 billion in bond markets for AI and cloud projects, a clear break from the past pattern of relying mostly on cash reserves. As borrowing climbs, investors are using tools like credit default swaps and other hedges more often to manage their growing exposure to AI‑linked corporate debt
READ MORE: Bittensor Price Prediction: Analyst Targets $790 If Falling Wedge Holds
