Alphabet Inc., the parent company of Google, is planning to issue its first bond denominated in Japanese yen, while Amazon.com Inc. is moving forward with a debut debt sale in Swiss francs, signaling a shift among U.S. technology giants toward international borrowing to fund massive investments in artificial intelligence infrastructure.
The moves come as spending on AI accelerates across the industry. Analysts expect large technology firms to collectively spend at least $700 billion on AI-related infrastructure this year, a significant jump from the estimated $410 billion recorded last year. As spending requirements grow, companies that once relied heavily on strong internal cash reserves are increasingly turning to debt markets to finance expansion.
Neither Alphabet nor Amazon disclosed the size of their planned bond offerings. However, a person familiar with Alphabet’s plans said the company’s yen-denominated issue could amount to hundreds of billions of yen. Details of the offering are expected to be finalized later this month. To manage the transaction, Alphabet has reportedly selected several major financial institutions, including Bank of America, Morgan Stanley, and Mizuho.
Alphabet has been active in bond markets recently. Last week, the company secured almost $17 billion via two different bond transactions, including a €9 billion issue (equivalent to roughly $10.6 billion) and a C$8.5 billion sale valued at about $6.2 billion.
Amazon also confirmed new borrowing plans. A company spokesperson said proceeds from the Swiss franc offering will support general corporate operations and may help finance future investments and long-term spending plans. A person with knowledge of the matter said Amazon has appointed several banks to oversee the transaction, including JPMorgan Chase, BNP Paribas, and Deutsche Bank. The planned debt sale is expected to include six separate parts, with repayment periods ranging from three years to as long as 25 years.
Market analysts suggest the decision to raise funds internationally reflects both the enormous financing needs of leading technology companies and the strong investor confidence they command. 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.
For business and technology leaders, this trend highlights the growing capital intensity of AI. Companies that can access global debt markets at favorable terms may gain a competitive edge in building the infrastructure needed to develop advanced AI systems. Conversely, smaller players without similar access may face challenges keeping pace.
As AI systems become more advanced, companies like Datavault AI Inc. (NASDAQ: DVLT) are likely to come up with even more sophisticated AI-powered solutions designed to meet the evolving needs of their client base, according to AINewsWire.
