Major technology companies are expanding their sources of debt financing to support large investments in artificial intelligence. According to people familiar with the matter who spoke to Semafor, Meta is preparing a sizable bond offering that would include its first‑ever euro‑denominated borrowing, for up to $15 billion.
Alphabet has also been active in international debt markets this year. The company closed its second euro deal of the year and earlier issued its first British‑sterling bond — a rare "century bond" maturing in 2126 — while also accessing Swiss and Japanese debt markets.
Why are tech companies moving beyond US markets?
Until recently, many of the largest technology firms relied primarily on U.S. capital markets. By tapping other markets and currencies, they broaden their lender base and create optionality: having multiple funding channels available can be valuable if rapid or large funding needs arise.
For hyperscale cloud and AI providers, diversifying debt sources is particularly important. The capital required to build and deploy advanced AI infrastructure is substantial, and access to global debt markets helps support those expenditures — which in turn have been a factor in supporting these companies' stock valuations.
Facts and sourcing
- Meta: preparing a bond sale that would include its first euro borrowing, up to $15 billion, according to people familiar with the plans who spoke to Semafor.
- Alphabet: completed its second euro bond of the year; earlier this year issued its first sterling bond, a 2126‑maturing "century bond," and also accessed Swiss and Japanese debt markets.
Those details were reported by people with knowledge of the transactions to Semafor. Official terms and final documentation for any of the planned or completed issuances will provide the definitive information.
Why it matters
Expanding into non‑U.S. bond markets signals that big tech firms are preparing multiple financing options as they pour capital into AI. Access to a range of currencies and investor bases increases flexibility and resilience in funding, which matters for both corporate finance and investor assessments as these companies undertake costly, long‑term AI projects.
Reporting by Ellen DiMauro for Semafor informed this coverage.
