Alphabet Inc., the parent company of Google, announced plans to issue its first-ever bond denominated in Japanese yen, while Amazon is moving forward with preparations for an inaugural debt sale in Swiss francs. These moves underscore a broader financing shift among U.S. technology giants as they seek fresh capital outside domestic markets to support the rapidly rising costs of artificial intelligence (AI) infrastructure.
The developments come as global investment in AI accelerates. Analysts expect large technology firms to collectively spend at least $700 billion on AI-related infrastructure this year, a significant increase from an estimated $410 billion in 2024. As spending requirements grow, companies that once relied heavily on internal cash reserves are increasingly turning to borrowing to fund expansion.
Neither Alphabet nor Amazon disclosed the size of their planned offerings. However, a person familiar with Alphabet’s plans said the yen-denominated issue could amount to hundreds of billions of yen, with details expected to be finalized later this month. Alphabet has selected several major financial institutions to manage the transaction, including Bank of America, Morgan Stanley, and Mizuho.
Alphabet has been active in bond markets recently. Last week, the company secured nearly $17 billion via two different bond transactions: a €9 billion issue (approximately $10.6 billion) and a C$8.5 billion sale (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 JPMorgan Chase, BNP Paribas, and Deutsche Bank to oversee the transaction. The planned debt sale is expected to include six parts with repayment periods ranging from three to 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.
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.
