Use diversified financing to refute the AI bubble! From 100-year bonds to Australian dollar bonds, Google's parent company Alphabet (GOOGL.US) uses global financing to support AI ambitions

The Zhitong Finance App learned that Alphabet Inc. (GOOGL.US), the parent company of Google, one of the seven major US tech giants, has hired a number of large commercial banks to prepare for its possible first Australian dollar-denominated corporate bond issuance. At a time when American technology companies are pouring into the corporate credit market to finance investments in increasingly expanding artificial intelligence computing power infrastructure, Alphabet is also further broadening its international debt financing channels.

According to a statement issued by ANZ, one of the authorized underwriters, via email, the US tech giant may issue bonds covering 4 types of maturities, the longest of which can be up to 20 years. Alphabet is considering issuing an initial Australian dollar bond of up to 20 years after completing the $25 billion bond financing; it has previously entered the Japanese yen, Swiss franc, British pound, euro, and Canadian dollar markets. At the same time, Berkshire once again increased its holdings. Alphabet's second-quarter holdings surged 83% to nearly 106 million shares worth about US$37.8 billion, making it the third largest stock holdings.

Notably, since this year, Alphabet has expanded its financing from Wall Street into a true global capital market network: it issued 5.5 billion pounds (about 7.53 billion US dollars) and 3,055 billion Swiss francs (about 3.98 billion US dollars) bonds in February, including even the rare 100-year bonds in the technology industry since 1997.

Shortly thereafter, Google's parent company also issued 9 billion euros (about 10.6 billion US dollars), 8.5 billion Canadian dollars (about 6.2 billion US dollars), and 576.5 billion yen (about 3.6 billion US dollars) bonds that set a record for foreign companies — according to the total exchange rate at the time of issuance, non-US dollar bonds from outside the US have raised at least US$31.9 billion since 2026, and is currently preparing to enter the Australian dollar bond market for the first time, with a maximum term of 20 years.

As the AI bond frenzy seems to overwhelm Wall Street, it is actively pushing supertech giants such as Google's parent company Alphabet to switch to overseas credit markets. Wall Street bankers, on the other hand, say they are pushing tech company executives to finance overseas markets, partly to avoid a frightening oversupply in the US bond market, which in turn causes the “AI bubble argument” to hit these tech companies' valuations and bond issuance plans hard.

North American tech giants have circumvented a single US bond market and switched to a global credit market, highlighting that AI computing power infrastructure construction is expanding the narrative from technology stock valuations to a real capital expenditure cycle of a global credit market and cross-currency financing system. This dynamic can be described as hurting the “AI bubble argument. If AI leaders tend to think that the AI investment frenzy is in the process of a bubble, then these companies usually rely on stock price narratives, venture capital, or short-term market sentiment financing; however, hyperscale cloud vendors such as Google's parent company Alphabet, Amazon, and Meta are using multi-currency bonds such as EUR, CAD, JPY, CHF, and USD to finance data center optical interconnection infrastructure, AI servers, power equipment, network infrastructure, storage components, and model training/inference infrastructure. This shows that they view AI as an ultra-long-term balance sheet project rather than short-term marketing concept.

As Berkshire, the “stock god” Buffett, who has been at the helm for a long time, verifies bullish confidence on the equity side by continuing to increase positions in Google's parent company Alphabet, and the global bond market verifies Google's strong financing capabilities and AI-related cloud computing business verifies initial AI revenue generation and commercial returns, Alphabet is becoming one of the companies most capable of overcoming the AI bubble debate, and stock prices and fundamentals are expected to continue to receive positive catalysts under strong financial support.

From US dollar bonds to Australian dollar bonds, Alphabet's global financing footprint expands

Since this year, giants such as Google and Amazon have been reducing a series of negative effects brought about by the AI bubble panic and preventing the exhaustion of liquidity reserve resources supporting AI computing power infrastructure spending by establishing a long-lasting and multi-sovereign currency hyperscale market financing structure.

Alphabet already issued $25 billion in bonds on the US dollar bond market earlier this month, and also issued bonds denominated in Swiss francs, pounds, euros, Canadian dollars, and Japanese yen in 2026. The company also recently raised close to $85 billion through an additional stock offering.

Along with Facebook's parent company Meta Platforms and their peers at American supertech giants such as Oracle, Amazon, and even Microsoft, these tech giants have raised hundreds of billions of dollars in dollars and other sovereign currencies this year to support their artificial intelligence ambitions.

Although large technology companies' huge investments in artificial intelligence are helping to push technology stocks around the theme of AI computing power in the stock market to an all-time high, in the context of the issuance of huge corporate credit bonds, higher bond yields have further intensified the market debate, that is, whether these companies can generate sufficient profits from such a huge scale of AI computing power infrastructure investment, and the risks associated with the bursting of the “AI bubble” caused by the combination of growing corporate bond issuance and default expectations.

Alphabet is turning AI capital expenditure anxiety into a financing advantage

Google's parent company Alphabet is transforming its AA credit rating quality+strong cash flow+strong cloud computing revenue growth brought about by search engine business (Search) into a global low-cost long-term capital source to prevent the single dollar bond market from being overwhelmed by huge AI-related supply through multiple currencies and diversification of the investor base. These latest developments on the AI credit market can indeed significantly weaken the “AI bubble/unsustainable financing” fears surrounding the Alphabet version, but they have yet to completely dispel the bubble controversy of the entire AI industry.

In the second quarter after Greg Abell officially took the helm of Berkshire Hathaway, the investment giant once again made a stronger equity capital signal than issuing bonds: it was not a margin of safety for buying Alphabet's debt, but was directly bearing the equity risk that AI capital expenses could eventually be converted into shareholder value. As of June 30, Berkshire surged Alphabet's holdings from about 57.8 million shares at the end of the first quarter to close to 106 million shares, with a market value of about 37.8 billion US dollars, making Alphabet the third-largest stock holding after Apple and American Express; this includes the $10 billion Alphabet investment announced in June, which is clearly related to supporting the expansion of its AI infrastructure.

What is more noteworthy is that it is not as simple as “the successor of the Master of Value Investing endorses the AI concept”, but rather a closed loop bet on Alphabet's search engine and advertising business cash cow, Google Cloud (Google cloud computing business), Gemini, and TPU custom AI chips, and a huge distribution portal when the capital expenses of Alphabet expanded rapidly. As far as Google's fundamentals and valuation prospects are concerned, Berkshire's continuous increase in positions can reduce the “AI CapEx black box discount” given to Alphabet by the market, while the global bond market continues to absorb its long-term bonds, reducing the risk that the AI arms race may erode the final financing of the balance sheet.

As to how much incremental cash flow can be generated for every dollar invested in AI capital — Alphabet has given a very strong, yet unverified answer. Q2 Alphabet's revenue increased 24% year over year to 119.8 billion US dollars, Google Cloud revenue surged 82% to 24.8 billion US dollars, and Cloud operating profit reached 8.8 billion US dollars, or more than tripled year over year, and operating profit margin jumped from 20.7% to 35.6%. These data all show that AI computing power infrastructure is not only an operating cost center, but is also forming actual revenue and profit through Cloud and enterprise AI revenue generation and TPU. But the other side of the coin is also important: the company further raised capital expenditure in 2026 to $1950 billion, Q2 free cash flow even turned negative to $5.9 billion, and the global supply of AI debt itself is driving up real interest rates and capital scarcity premiums in credit markets.

Bonds can still be sold globally, and Berkshire's massive stock purchases can jointly refute the extreme bubble theory that “the financing chain is about to break,” but it cannot replace the final return on investment (ROIC), free cash flow (FCF), and AI revenue generation and implementation route chart. Alphabet's massive AI investment this year is already putting pressure on free cash flow, which is the core reason the market still requires it to prove returns.