Alphabet has sold bonds worth $20 billion in a seven-part offering stretching out to 2066, tapping the debt market to fund its surging spending on artificial intelligence infrastructure.
The disclosure on Tuesday underscored Big Tech’s growing appetite for credit, in a shift away from years of relying on strong cash flows to fund investment in new technologies.
The pivot has raised investor concerns as payoffs remain small from the hundreds of billions of dollars U.S. tech giants are pouring into AI.
READ MORE: Alphabet hits $4 trillion valuation as AI refocus lifts sentiment
Their capital expenditure is expected to total at least $630 billion this year, with most of spending focused on data-centers and the AI chips that power them.
Alphabet’s announcement follows a $25 billion note sale by Oracle disclosed on February 2 in a securities filing.
Last week, Alphabet said it would spend as much as $185 billion this year.
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