This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) is looking to raise between $20 billion and $25 billion in a new U.S. bond offering, according to Reuters, which cited a person familiar with the matter. The notes would come in up to 10 tranches, maturing anywhere from two to 40 years out. Alphabet shares are up 0.31% premarket.
The raise fits a broader shift. Alphabet, Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Oracle (NYSE:ORCL) issued about $194 billion in bonds through early July, up 79% from a year earlier, as companies that once funded investment from cash reserves turn to borrowing. Big Tech is expected to spend more than $730 billion this year, mostly on AI, and the outlay is starting to bite. Alphabet posted its first-ever negative free cash flow in the second quarter and raised its capital spending forecast for the second time this year.
In June, Alphabet announced an $80 billion equity offering, later upsized to nearly $85 billion on strong demand, including an investment from Berkshire Hathaway (NYSE:BRK.B). It has also sold bonds in yen, francs, and pounds this year, among them a rare 100-year note.