The planned offering, disclosed in a filing on Monday, marks another sign of how rapidly rising AI-related costs are reshaping financing strategies across the technology sector.
Although Alphabet did not reveal the exact size of the planned issuance, a source familiar with the matter said the deal is expected to raise several hundred billion yen, with final terms likely to be determined later this month.
The source, who was not authorised to speak publicly on the matter, declined to be identified. Alphabet also did not immediately respond to requests for additional details regarding the size of the offering.
The company has appointed Mizuho, Bank of America and Morgan Stanley to manage the transaction.
While Morgan Stanley did not immediately comment on the development, Bank of America and Mizuho declined to provide statements.
The move comes amid a broader shift in the technology industry, where major companies are increasingly relying on debt financing to fund ambitious AI expansion projects rather than depending solely on existing cash reserves.
Industry estimates suggest that major technology companies are expected to spend more than $700 billion on AI infrastructure in 2026, a sharp increase from approximately $410 billion spent in 2025.
The growing competition in artificial intelligence has pushed companies to accelerate investments in data centres, advanced chips, cloud computing systems, and large-scale AI model development.
Alongside Alphabet, Amazon is also reportedly preparing to enter a new debt market by issuing Swiss franc-denominated bonds for the first time.
According to a source familiar with the matter, Amazon has appointed banks including BNP Paribas, Deutsche Bank and JPMorgan Chase to coordinate a six-part debt offering with maturities ranging from three to 25 years.
The source declined to be identified because the matter remains private.
Amazon, BNP Paribas, and JPMorgan Chase did not immediately respond to requests for comment.
According to LSEG data, Alphabet’s proposed yen bond issuance would represent the company’s first-ever bond sale in the Japanese currency.
The company has already been highly active in global debt markets in recent weeks. Last week alone, Alphabet raised nearly $17 billion through two separate bond offerings, including a €9 billion issue and a C$8.5 billion issue, according to company filings.
The increased borrowing activity follows Alphabet’s decision in late April to raise its annual capital expenditure forecast by an additional $5 billion.
The company now expects capital spending to reach between $180 billion and $190 billion and has indicated plans for another significant increase in 2027 as competition in the AI sector intensifies.
Analysts say the aggressive spending reflects the enormous financial demands associated with building next-generation AI infrastructure, especially as companies race to develop more advanced generative AI systems and cloud computing capabilities.
The trend also highlights how the global AI race is transforming financial strategies within Silicon Valley, where companies historically relied heavily on internal cash flows to support expansion and innovation projects.