As competition for leadership in the artificial intelligence (AI) sector intensifies, major U.S. big tech companies are moving to secure large-scale funds in the bond market.

According to the Financial Times (FT) of the United Kingdom, Google’s parent company Alphabet on the 9th (local time) issued corporate bonds worth a total of USD 15 billion (about KRW 22 trillion) in the U.S. bond market. Alphabet’s bond sale attracted USD 100 billion (about KRW 145 trillion) in orders.

The U.S. dollar-denominated bonds issued by Alphabet this time consist of seven tranches with different maturities. Among them, the longest, a 40-year note, carries a spread of 1.2 percentage points over U.S. Treasuries. In particular, in the British pound-denominated tranche, an ultra-long bond with a 100-year maturity is also being issued. It is unusual for a technology company to issue a 100-year bond in the corporate bond market.

The AI investment race is spreading to other companies as well. Elon Musk’s AI company xAI raised USD 3.4 billion (about KRW 5 trillion) through private credit to finance purchases of Nvidia semiconductors. U.S. investment bank Morgan Stanley forecast that major big tech companies’ borrowing this year will reach USD 400 billion (about KRW 585 trillion).

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