Alphabet Inc. is considering borrowing another $25 billion as its AI expansion tests the bond market.

According to DeepBeat Monitoring, Google's parent company Alphabet is preparing to issue a new round of US corporate bonds, planning to raise up to $25 billion. The bonds will be divided into a maximum of 10 tranches with maturities ranging from 2 years to 40 years, and the final size is yet to be determined.

This money will provide funding for Google to continue expanding its AI infrastructure. Alphabet has recently increased its 2026 capital expenditure cap to $205 billion, adding an additional $15 billion to the previous plan. The company has already issued over $50 billion in bonds in the first half of this year.

Market sentiment is no longer as enthusiastic as at the beginning of the year. The initial pricing of the 40-year bonds is about 1.55 percentage points higher than comparable US Treasuries. In July, demand weakened for several AI-related bond offerings, and Alphabet's bond issuance this time will directly test whether investors are still willing to foot the bill for AI expansion.