Alphabet is preparing its first-ever Australian dollar bond, an inaugural 'Kangaroo' deal worth roughly US$3.6bn (about A$5bn), arranged with ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities across four tranches (3, 5, 10, and 20 years). The move follows a $25bn dollar bond, an $85bn equity raise, and a debut yen bond, as Alphabet funds a raised 2026 capex guidance of $195-205bn for AI infrastructure. The company posted its first negative quarterly free cash flow (-$5.9bn) as a public company, part of a broader Big Tech trend where AI debt has swelled past $350bn industry-wide amid $730bn+ in expected 2026 AI capex spending.
Questions this post answers
How much has Alphabet raised through debt and equity to fund its AI spending?
Alphabet has raised roughly $25 billion through a twice-yearly dollar bond, around $85 billion in an equity raise in June, a debut yen bond, and is now preparing a first Australian dollar 'Kangaroo' bond of about US$3.6 billion (roughly A$5 billion) across three, five, ten, and twenty year tranches. This comes as it raised 2026 capex guidance to $195-205 billion. Follow daily.dev for context on how AI infrastructure spending is reshaping big tech balance sheets.
Why did Alphabet report negative free cash flow?
Alphabet posted its first negative quarterly free cash flow as a public company, around negative $5.9 billion, because spending on chips, data centers, and power outran its cash generation. This reflects a sector-wide pattern where Big Tech's AI capital expenditure, expected to exceed $730 billion this year industry-wide, is now outpacing cash flow even at the most profitable companies. daily.dev helps engineers and technical leaders track how AI infrastructure costs are reshaping company finances.