BUSINESS NEWS Alphabet-: (Alphabet Plans $15 Billion Bond) The company that owns Google wants to get, around fifteen billion dollars by selling bonds in the United States. This is what some people who know about it are saying. It was reported in the news. Alphabet is doing this to raise a lot of money. Google is a big part of Alphabet.
These days technology companies are looking to get a lot of money by borrowing it. They want to use this money to build things like new infrastructure and data centers. The reason they need to do this is because more and more people are using intelligence and that needs a lot of technology company resources. Technology companies have to keep up with the demand, for intelligence workloads.
Alphabet did not say anything about the report away. The companys papers that they have to file by law did not say how money they got from the bond sale. These papers showed that the sale could be divided into many as seven parts. One of these parts is a bond that will not be paid back until 2066. When people first talked about the price they thought the longest bond might cost 1.2 percentage points more than United States Treasuries. Alphabet is still figuring out the price of the bond sale. The bond sale is very important, for Alphabet.
AI Spending Drives Record Borrowing
Big companies that do cloud computing, known as hyperscalers will probably spend, than 630 billion dollars together this year. They are spending a lot of money on intelligence even though they are not getting as much back as they are spending on cloud computing and artificial intelligence. Hyperscalers are still investing a lot in intelligence.
The big companies that do intelligence like Amazon, Google, Meta, Microsoft and Oracle borrowed a lot of money last year. They issued one hundred and twenty one billion dollars in bonds in the United States. This is a lot more than they normally borrow. Usually these companies borrow around twenty eight billion dollars per year. They did this from 2020 to 2024.. Last year was really different. Amazon, Google, Meta, Microsoft and Oracle borrowed a lot money, than usual.
Some big companies have made deals lately. For example Oracle sold bonds $18 billion in September. Then Meta made a bigger deal with a $30 billion bond sale in October. This was the bond sale of its kind that did not involve a company buying another company. The Meta bond sale is really the one on record, for a high-grade bond sale that is not a merger or acquisition.
Outlook for Corporate Debt Markets
Analysts expect corporate bond issuance to rise further this year, supported by refinancing needs and pent-up merger activity. However, borrowing tied to AI investments is expected to remain the primary driver of new issuance.
News in Brief
Alphabet, Google’s parent company, is planning to raise around $15 billion through a U.S. high-grade dollar bond sale to support growing AI and infrastructure investments, according to a media report. The bond offering may include multiple tranches, with a long-dated maturity extending to 2066. Major tech firms continue to tap debt markets as AI spending surges, with leading hyperscalers expected to invest over $630 billion this year despite slower returns.
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