Refuting the AI bubble with diversified financing! From century bonds to the debut of Australian dollar bonds, Google's parent company Alphabet supports its AI ambitions with global financing

According to the Zhitong Finance APP, Alphabet Inc. (GOOGL.US), the parent company of Google and one of the seven major technology giants in the United States, has hired several large commercial banks to prepare for a potential issuance of corporate bonds denominated in Australian dollars. As U.S. tech companies rush into the corporate credit market to finance investments in increasingly expanding artificial intelligence computing infrastructure through debt, Alphabet is also further broadening its international debt financing channels.

According to a statement released via email by one of the appointed underwriting banks, Australia and New Zealand Banking Group, this American tech giant may issue bonds covering four different maturities, with the longest term reaching up to 20 years. After completing a $25 billion USD bond financing, Alphabet is considering its first issuance of Australian dollar bonds with a maximum maturity of 20 years; it has previously entered markets for Japanese yen, Swiss franc, British pound, euro, and Canadian dollar. Meanwhile, Berkshire Hathaway has once again increased its holdings, with its second-quarter position in Alphabet rising by 83% to nearly 106 million shares, valued at approximately $37.8 billion, making it its third-largest stock holding.

It is noteworthy that this year, Alphabet has expanded its financing from Wall Street into a truly global capital market network: in February, it issued £5.5 billion (approximately $7.53 billion) and CHF 3.055 billion (approximately $3.98 billion) in bonds, which even included a rare 100-year bond in the tech industry since 1997.

Shortly thereafter, the Google parent company issued €9 billion (approximately $10.6 billion), CAD 8.5 billion (approximately $6.2 billion), and a record-breaking ¥576.5 billion (approximately $3.6 billion) bond for foreign enterprises—totaling approximately $31.9 billion in non-USD bond financing outside the U.S. from 2026 to date, and now preparing to enter the Australian dollar bond market for the first time, with a maximum maturity potentially reaching 20 years.

As the AI bond frenzy seems to overwhelm Wall Street, it is actively pushing tech giants like Alphabet to turn to overseas credit markets. Bankers on Wall Street have indicated that they are encouraging tech company executives to seek financing in overseas markets, partly to avoid a panic-driven oversupply in the U.S. bond market, which could lead to "AI bubble" rhetoric severely impacting these tech companies' valuations and bond issuance plans.

North American tech giants are bypassing the single U.S. bond market and turning to the global credit market, highlighting that the construction of AI computing infrastructure is evolving from a narrative of tech stock valuation expansion to a real capital expenditure cycle in the global credit market and cross-currency financing system, a dynamic that strikes hard against "AI bubble" rhetoric. If AI leaders tend to believe that the AI investment frenzy is in a bubble process, these companies typically rely on stock price narratives, venture capital, or short-term market sentiment for financing; however, tech giants like Alphabet, Amazon, and Meta are financing data center optical interconnect infrastructure, AI servers, power equipment, network infrastructure, storage components, and model training/inference infrastructure with multi-currency bonds in euros, Canadian dollars, Japanese yen, Swiss francs, and U.S. dollars, indicating that they view AI as a long-term balance sheet project rather than a short-term marketing concept As "stock god" Warren Buffett continues to steer Berkshire Hathaway, the company is validating bullish confidence in equity through its ongoing accumulation of shares in Google's parent company, Alphabet. This is further supported by the global bond market affirming Google's strong financing capabilities and the cloud computing business related to AI demonstrating initial revenue generation and commercial returns. Alphabet is becoming one of the most capable companies to navigate the debates surrounding the AI bubble, with its stock price and fundamentals expected to receive continuous positive catalysts under strong financing support.

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

This year, giants like Google and Amazon have been establishing a durable and diversified sovereign currency-based mega-scale market financing structure to minimize the negative impacts of the panic surrounding the AI bubble and to prevent the depletion of liquidity backup resources that support AI computing infrastructure expenditures.

Earlier this month, Alphabet completed a $25 billion bond issuance in the US dollar bond market and also issued bonds denominated in Swiss francs, British pounds, euros, Canadian dollars, and Japanese yen in 2026. The company recently raised nearly $85 billion through an additional stock issuance.

Alongside tech giants like Facebook's parent company Meta Platforms, Oracle, Amazon, and even Microsoft, these tech behemoths have raised hundreds of billions of dollars this year through US dollars and other sovereign currencies to support their ambitious AI goals.

While the massive investments by large tech companies in artificial intelligence are helping to drive tech stocks related to AI computing back to historical highs, the backdrop of substantial corporate credit bond issuance and higher bond yields has intensified market debates about whether these companies can generate sufficient profits from such a large-scale investment in AI computing infrastructure. The intertwined expectations of continued corporate bond issuance and default risks have further escalated concerns about the potential bursting of the "AI bubble."

Alphabet is turning AI capital expenditure anxiety into financing advantages

Google's parent company, Alphabet, is transforming its AA-rated credit quality, strong cash flow from its search engine business, and robust growth in cloud computing revenue into a source of low-cost long-term capital globally. By diversifying its currency and investor base, it avoids the saturation of the single US dollar bond market with massive AI-related supply. These latest developments in the AI credit market can significantly alleviate the panic surrounding the "AI bubble/unsustainable financing" narrative related to Alphabet, but they do not completely dispel the bubble controversy surrounding the entire AI industry.

In the second quarter after Greg Abel officially took the helm at Berkshire Hathaway, the investment giant significantly increased its stake in Alphabet, sending a stronger equity capital signal than bond issuance: it is not merely buying the safety margin of Alphabet's debt but is directly assuming the equity risk that AI capital expenditures can ultimately translate into shareholder value. As of June 30, Berkshire increased its holdings in Alphabet from approximately 57.8 million shares at the end of the first quarter to nearly 106 million shares, a staggering 83% increase, with a market value of about $37.8 billion, making Alphabet the third-largest stock holding in Berkshire after Apple and American Express This includes the $10 billion investment in Alphabet announced in June, clearly related to supporting its AI infrastructure expansion.

More notably, this is not simply about "the successor to the value investing master endorsing the AI concept," but rather a bet on a complete AI monetization loop formed by its search engine and advertising business cash cow, Google Cloud, Gemini, TPU custom AI chips, and a vast distribution entry, at a time when Alphabet's capital expenditures are dramatically expanding. Berkshire's continuous accumulation can reduce the market's "AI CapEx black box discount" on Alphabet, while the global bond market's continued absorption of its long-term bonds lowers the financing tail risk that the AI arms race may erode the balance sheet.

Regarding how much incremental cash flow can be generated for every $1 invested in AI capital—Alphabet has already provided a fairly strong, albeit unverified, answer. In Q2, Alphabet's revenue grew 24% year-on-year to $119.8 billion, with Google Cloud revenue surging 82% to $24.8 billion, and Cloud operating profit reaching $8.8 billion, more than doubling year-on-year, with the operating profit margin jumping from 20.7% to 35.6%; these figures indicate that AI computing infrastructure is no longer just a cost center but is generating actual revenue and profits through Cloud, enterprise AI, and TPU. However, the other side of the coin is equally important: the company has further raised its capital expenditure for 2026 to $195 billion—$205 billion, and Q2 free cash flow even turned negative at $5.9 billion, while the global AI debt supply itself is also pushing up real interest rates and the capital scarcity premium in the credit market.

Bonds are still being sold globally, and Berkshire Hathaway's large-scale stock purchases can jointly refute the extreme bubble theory that "the financing chain is about to break," but they cannot replace the ultimate return on invested capital (ROIC), free cash flow (FCF), and the continuous verification roadmap for AI revenue realization. Alphabet's massive AI investments this year have already pressured free cash flow, which is precisely why the market still demands it to prove returns