Alphabet, the parent company of Google, issued yen-denominated bonds for the first time, raising its capital expenditure ceiling to $190 billion to invest in AI.

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Alphabet plans to enter the Japanese bond market for the first time, with an issuance expected to reach hundreds of billions of JPY. Bloomberg notes that this move is the latest step by Alphabet to expand its financing channels as the AI race intensifies. (Context: Breaking News: Google stock surges 7% to an all-time high! Q1 earnings crush expectations, cloud AI boom pushes market cap past $4.5 trillion) (Background: Buffett finally buys Google after six years! Splurging $4.3 billion, Alphabet becomes Berkshire's tenth-largest holding) $90 billion is the upper limit of Alphabet's capital expenditure plan for this year, an upward revision from previous estimates of $185 billion, and approximately double the actual expenditure for the full year of 2025. To support such a scale of investment, Google's parent company Alphabet is preparing its first issuance of JPY-denominated bonds to provide a new round of funding for AI infrastructure construction. The scale of this JPY bond issuance is expected to reach hundreds of billions of JPY, with detailed terms expected to be finalized later this month. Bloomberg reports that before this JPY bond issuance officially lands, Alphabet has successively tapped into USD, EUR, GBP, CHF, and CAD markets over the past 15 months, raising a total of nearly $50 billion. JPY will become the sixth currency, marking Alphabet's completion of a full coverage layout of bond investors in major developed markets. The Japanese bond market is known for its deep liquidity and has long attracted global multinational corporations to issue "Samurai Bonds" (foreign-issued JPY-denominated bonds in the Japanese market). For Alphabet, this move is not only a geographical extension of financing channels but also a financial operation to reduce overall capital costs by leveraging Japan's ultra-low interest rate environment, especially in an environment where USD financing costs are relatively high. Bloomberg points out that as AI investment continues to increase, Alphabet is systematically broadening its funding sources rather than betting on any single market. Bloomberg reports that the core purpose of this round of financing by Alphabet is concentrated in three directions: AI data center construction, cloud infrastructure expansion, and advanced computing systems to support its AI model operations. These three directions highly overlap and essentially point to the same proposition: in the era of generative AI, computing power is the moat. Alphabet has raised its 2026 capital expenditure target to $19 billion. The logic behind this is clear: the cost of GPU clusters and supporting network infrastructure required for AI model training and inference is far higher than that of traditional data centers. At the same time, the demand for Google Cloud continues to rise, further increasing the necessary scale of infrastructure investment. Comparing the competitive landscape, Microsoft, Amazon, and Meta are also significantly increasing capital expenditures in 2026, and the AI infrastructure arms race has entered a head-to-head stage. If Alphabet were to pull back at this time, it would create an irreparable structural gap in computing power reserves. Therefore, despite external doubts about whether the high capital expenditures of tech giants can be converted into proportional profit returns, Alphabet's management has chosen to continue accelerating investment. Alphabet's choice to enter the JPY market at this time is no coincidence. Although the Bank of Japan has started a rate hike cycle in 2024, JPY financing costs still have a clear advantage compared to the USD market. For a multinational tech company with a huge overseas cash position, a multi-currency debt structure helps to naturally hedge foreign exchange risks and reduce overall financial volatility. Judging from Alphabet's recent capital market actions, this issuance is unlikely to be an isolated event. Building on the diversified financing system established over the past 15 months, Alphabet has effectively built a capital market channel that can be activated at any time: as long as AI investment demand continues, financing actions will not stop. From a larger perspective, this transaction reveals a more fundamental trend: the world's top tech companies are using the bond market as an important ammunition depot for the AI arms race, rather than relying solely on their own cash flow.

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