Alphabet kicks off €6-billion bond sale, tests appetite for tech debt — SkimNews
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- Alphabet kicked off a €6-billion euro-denominated bond sale across seven tranches, drawing over €17 billion in total demand, as it seeks to fund corporate needs amid AI-driven financial scrutiny
- Alphabet reported plans to use net proceeds for general corporate purposes, including repaying existing debt, as it faces investor skepticism following a record $500-billion market value drop
- Alphabet disclosed $130.5 billion in future data center lease payments as of September 30 that are not yet on its balance sheet, highlighting off-balance-sheet commitments tied to AI infrastructure
- Alphabet expects up to $205 billion in capital spending for the year, underscoring the scale of its AI investment amid concerns about returns and cash flow
- Microsoft generated cash in the quarter while Alphabet and Amazon faced cash burn, marking a key divergence in Big Tech’s financial performance during the AI buildout
- Alphabet’s shares fell nearly 19% in October, their worst monthly decline, and dropped 12% on a single day after earnings revealed slower search growth and heavy AI-related spending
Why it matters: Alphabet’s bond sale highlights a shift in tech financing: even cash-rich giants now face investor pushback on AI spending without clear returns. With $205 billion in planned capex and $130.5 billion in off-balance-sheet leases, its ability to fund AI without diluting equity hinges on sustained debt market confidence — now being tested.
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