Alphabet seeks US$6.7bil from bond sale amid AI cost fears

WASHINGTON: Alphabet, the parent company of Google, is selling €6 billion (US$6.7 billion) in bonds on Monday as it seeks to tap investor demand amid growing concerns over the cost of artificial intelligence investments and their potential returns, reported German Press Agency (dpa).

The offering is divided into seven tranches, with total investor demand exceeding €17 billion (US$19 billion).

The bonds have maturities ranging from two to 19 years and comprise six fixed-rate tranches and one floating-rate tranche, according to a filing with the US Securities and Exchange Commission (SEC).

This is Alphabet's second euro-denominated bond sale this year, following a €9 billion (US$10 billion) offering in May.

The company said the proceeds would be used for general corporate purposes, including the possible repayment of outstanding debt.

Alphabet expects capital expenditure to reach as much as US$205 billion this year, largely reflecting investments in AI infrastructure and data centres.

The bond sale comes amid pressure on technology stocks, with the Nasdaq falling five per cent in October as concerns over heavy AI spending weighed on investor sentiment.