Why Is Google Parent Alphabet Taking on $32 Billion in New Debt?

Group 1 - Alphabet issued $32 billion in new debt, including $20 billion in U.S. dollar-denominated bonds and $12 billion in bonds denominated in sterling and Swiss francs, with a notable 100-year note in the sterling offering [1] - The company is utilizing this debt to fund its significant investments in AI data centers and infrastructure, planning to spend $185 million this year, which is double the amount spent last year [2] - Other major tech companies, referred to as hyperscalers, are also raising substantial funds for AI infrastructure, with Amazon planning $100 billion, Meta Platforms $135 billion, and Microsoft $105 billion [3] Group 2 - In addition to Alphabet, other tech giants have issued tens of billions in debt recently for capital expenditures, with Oracle raising $18 billion in bonds last September and another $25 billion this month [4] - Bond investors have shown strong demand for these new issuances, indicating a competitive AI race among major tech companies [5]