Alphabet plans Australian debt sale for AI

Alphabet has tapped Australian banks to issue AUD bonds to fund its AI spending, signaling potential concerns about US debt markets meeting its financing needs. The company is exploring Kangaroo bond maturities of 3, 5, 10, and 20 years, though the deal size hasn't been announced. This follows a large debt and equity fundraising in recent months, with USD25 billion in dollar bonds issued in August and about USD85 billion raised in June. Australian dollar bond issuance by foreign issuers has surged to a record level this year, highlighting cross-border funding activity among tech giants. The move underscores the capital-intensive race among hyperscalers to finance AI investments amid tightening financing conditions.