People with knowledge of the matter told Bloomberg News that Alphabet is tapping the US high-grade bond market. The company is selling bonds in as many as seven parts, according to its regulatory filing – which comes amid a series of technology giants borrowing amid the continued AI boom.

Initial price discussions for the longest portion of the deal, a 40-year bond, are for a premium of roughly 1.2 percentage point about Treasuries, the Bloomberg report revealed.

The news comes as technology companies turn to debt sales worth tens of billions of dollars to fund their infrastructure expansions. As AI demand continues to soar, hyperscalers are expected to invest roughly $630 billion into AI in 2026 alone.

According to a recent IBM study, AI spend could shift from efficiency to innovation, with AI productivity gains projected to increase by 42% by 2030.

Amazon, Google, Meta, Microsoft and Oracle issued $121 billion in US corporate bonds last year, compared with an average of $28 billion between 2020 and 2024, according to BofA Securities.

M&A activity appears to be increasing, as companies look to invest further into AI and get further ahead in the digital transformation race. At Metro Connect USA last year, an M&A-led panel suggested that the deal environment would remain very active, particularly in the data centre and fibre sectors.

“We’re seeing new institutional funds willing to take on more risk,” said Valtin Gallani, head of TMT finance and advisory at Societe Generale, describing a market where private capital is bridging the valuation expectations of sellers and the return hurdles of buyers.

See more information about this year’s Metro Connect USA event below.

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