Alphabet mobilizes billions via global debt sale to accelerate AI buildout

Notably, a rare 100-year maturity in pounds was part of the portfolio. Market participants reportedly bid the deal about five times over, underscoring strong demand for high-grade tech debt.

Key figures at a glance
- Bond issuance size: about $32 billion (reports indicate over $30 billion)
- 2026 capex outlook: up to $185 billion
- Long-term debt at end-2025: $46.5 billion
- Gemini monthly active users: 750 million
- Advertising revenue in Q4 2025: $82.28 billion, +13.5% vs. a year earlier

Bond-market dynamics and the demand backdrop
What began as a roughly $20 billion U.S. dollar offering quickly grew as investor appetite remained sturdy. The following day, the deal broadened to include European tranches denominated in pounds and Swiss francs, with a combined value of about $11 billion. The total placement approached $32 billion, marking it as one of the larger bond transactions of the period. The inclusion of a 100-year pound-denominated piece drew particular attention due to its rarity and the evident investor interest, with sources describing the placement as several-fold oversubscribed.

Debt accumulation accelerates into 2025
Alphabet?s funding activity continues a trend seen in late 2025. In November 2025, the company already sold bonds valued at $25 billion. Its financial disclosures for 2025 reflect a marked rise in leverage, as long-term liabilities surged to $46.5 billion?effectively quadrupling over the year. CFO Anat Ashkenazi stressed during the earnings call that the company intends to finance its investments in a fiscally prudent manner while maintaining a robust balance sheet.

AI infrastructure as the primary cost driver?and elevated risk awareness
The main engine behind the cash needs is the expansion of Alphabet?s AI infrastructure. In its Q4 2025 update, the company indicated that capital expenditures could reach as much as $185 billion in 2026, more than doubling the prior year?s level. CEO Sundar Pichai highlighted operational bottlenecks, pointing to the critical role of computing capacity and the bottlenecks in electricity, real estate, and supply chains. The firm notes that such constraints could slow the AI rollout, even as demand remains exceptionally strong and the drive to scale infrastructure continues apace.

Should investors sell immediately? Or is it worth buying Alphabet?

Concurrently, Alphabet?s annual report to the SEC includes new risk disclosures tied to AI. The disclosures warn about potential impacts of generative AI on the advertising business, noting that formats and strategies are continually adjusted while offering no guarantee that these adjustments will be effective or competitive. The company also flags risks from long-term, large-scale AI-infrastructure contracts, including possible overcapacity and additional obligations arising from complex leasing arrangements with third-party providers.

Gemini growth and advertising momentum
Operational progress includes continued expansion of Gemini, Alphabet?s AI assistant app, which reached 750 million monthly active users, up from 650 million in the prior quarter. The company?s advertising enterprise also advanced in Q4 2025, delivering $82.28 billion in revenue, a year-over-year increase of 13.5%.

Stock market snapshot
Recent trading has been volatile. According to Yahoo Finance, Alphabet?s shares closed at $311.33 yesterday, after finishing the prior session at $318.63. The intra-day swing stretched from a low of $310.13 to a high of $321.04.

Outlook and what to watch next
In the coming months, investors will be focused on whether Alphabet provides greater clarity on its Capex framework and on how rapidly it can scale compute power, energy supply, and logistics to support AI growth. The balance between aggressive investment and maintaining financial discipline will be key questions as the company navigates the ongoing demand for AI infrastructure.

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