As major technology companies pour billions into AI, two of the sector’s biggest names are increasingly turning to overseas debt markets to support rising costs tied to the fast-moving AI race.
Google parent company Alphabet recently revealed plans to issue its first bond denominated in the Japanese yen, while Amazon moved forward with preparations for an inaugural debt sale in Swiss francs. The developments reflect a broader financing shift among U.S. technology giants seeking fresh capital outside domestic markets as spending on advanced computing infrastructure accelerates.
The step comes as investment in AI expands rapidly across the industry. Analysts expect large technology firms to collectively spend at least $700 billion on artificial intelligence-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 making use of borrowing to fund 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. According to the source, 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.
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.
Alphabet has been active in bond markets in the recent past. 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 an 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.
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 come up with even more sophisticated AI-powered solutions designed to meet the evolving needs of their client base.
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