MOUNTAIN VIEW, California: Alphabet is seeking to raise between US$20 billion and $25 billion through a U.S. bond offering, according to a source familiar with the matter, as the Google parent continues to invest heavily in artificial intelligence infrastructure.

The company is offering notes in up to 10 tranches, according to a regulatory filing. The bonds are expected to have maturities ranging from two to 40 years, the source said.

Alphabet did not comment on the size of the offering or the proposed maturities. Bloomberg News first reported the expected size of the bond sale.

The planned debt issuance is the latest sign that major technology companies are increasingly turning to bond markets to finance rising AI-related spending, despite traditionally relying on large cash reserves to fund investments.

According to a Reuters analysis of LSEG data published last month, Amazon, Alphabet, Meta and Oracle had issued about $194 billion in bonds through July 7 this year, up 79 percent from roughly $108 billion during the same period in 2025.

Big Tech companies are expected to spend more than $730 billion on AI this year, with the surge in investment already weighing on cash flows. Alphabet reported its first-ever negative free cash flow in its second-quarter earnings late in July.

The company also raised its annual capital expenditure forecast for the second time this year, fueling investor concerns over how quickly its AI investments will generate returns, particularly amid delays surrounding its flagship AI model.

In June, Alphabet announced an $80 billion equity fundraising that included an investment from Berkshire Hathaway. The company later increased the offering to nearly $85 billion following strong investor demand.

Alphabet has also tapped international debt markets this year, issuing bonds denominated in Japanese yen, Swiss francs and British pounds, including a rare 100-year bond.