Google Parent Alphabet Taps European Debt Market Again To Fund Record AI Investments: Report

• Alphabet is planning to sell 3 billion euros worth of bonds, a second time the company is hitting the European debt market this year.
• Bloomberg reports that the prices of the offering will be issued on Monday.
• Major Big Tech companies have indicated their capex will increase next year, mostly on account of investment in AI development.

Google-parent Alphabet, Inc. (GOOGL) plans to sell at least 3 billion euros ($3.5 billion) worth of bonds, marking its second offering in the European debt market this year, according to a Bloomberg report on Monday.

GOOGL stock rose 0.7% in early premarket trading.

The tech giant is marketing six euro-denominated benchmark tranches, ranging from three to 39 years, according to the report, which cites an unnamed source. Alphabet debuted a multi-tranche 6.75 billion euro offering earlier this year, which reportedly drew heavy demand.

The debt raise will be used largely to fund the company’s artificial intelligence development plans, including investment in expanding its data center capacity, according to the report.

The development comes as American Big Tech companies, including Meta, Microsoft, Amazon, and Alphabet, indicated higher capital expenditures for next year, according to their management’s comments during recent earnings reports.

Alphabet expects this year’s expenditures to be $91 billion to $93 billion, a new record, and revenue from products built on Google’s generative AI models to grow more than 200% from a year earlier.

Goldman Sachs, HSBC, and JPMorgan are joint global coordinators and joint bookrunners of the offering, while BNP Paribas, Crédit Agricole CIB, and Deutsche Bank are also joint bookrunners. Pricing is expected later on Monday, Bloomberg reported.

On Stocktwits, the retail sentiment for GOOGL was ‘extremely bullish’ as of early Monday. As of the last close, the stock has increased by 48.5% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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