Google owner Alphabet to tap U.S. dollar, euro bond markets

Google owner Alphabet is tapping the U.S. dollar and euro debt markets in a multi-tranche senior unsecured notes offering.

The digital media and tech giant will use the proceeds from the note sale for general corporate purposes, including the potential repayment of a portion of its outstanding debt, according to a Monday report by Moody’s Ratings.

Alphabet last took out fresh debt in April, tapping the euro debt market for 6.75 billion euros ($7.87 billion) for the first time. Tech peer Oracle itself sought $18 billion in new debt in September, while Meta raised $30 billion in bonds last month.

Demand for cloud and artificial intelligence services from Alphabet and other tech conglomerates is on the rise.

“These corporations are saying they’re capacity constrained,” said Emile El Nems, senior credit officer at Moody’s Ratings. “Layer on top of that the potential demand that could be coming in from AI computing and you say to yourself there is something there,” he added, referring to an apparent trend of tech companies tapping the debt markets. Alphabet, Oracle and Meta are also less levered than their peers, he said.

Alphabet has maintained a leading market position through its array of digital services, most notably its Google search service where it has integrated its Gemini AI platform. The company also holds dominant market positions through its advertising and YouTube businesses.

A representative for Alphabet did not immediately return a request for comment.