Alphabet Raises Record Yen Bond, Settles YouTube Lawsuit, and Gears Up for Google I/ O

Alphabet raises record $3.6B yen bond for AI data centers, settles YouTube lawsuit. Pershing Square exits, Berkshire buys. Waymo grows, Google I/O preview.

Alphabet is clearing the decks for its next AI offensive, raising a record-breaking bond in Japan while simultaneously extinguishing a legal liability that could have cast a shadow over its developer conference. The dual moves underscore a management team determined to remove distractions as it funnels tens of billions into cloud and artificial intelligence infrastructure.

The company placed a yen-denominated bond worth 576.5 billion yen (roughly $3.6 billion) on May 16 — the largest such issuance ever by a foreign corporation in that currency, according to the offering documents. Moody’s assigned its top Aa2 rating to the notes. The proceeds will bankroll new AI data centers and cloud hardware, part of a capital spending plan that Alphabet expects to swell to as much as $190 billion by 2026, roughly double last year’s outlay. The bond follows nearly $60 billion in cross-currency fundraising already completed this year.

Away from the capital markets, Alphabet quietly resolved a high-profile lawsuit. YouTube reached an out-of-court settlement with Breathitt County, Kentucky, a school district that had accused social media platforms of contributing to teen mental health crises. The deal lets Alphabet sidestep a trial scheduled for June, leaving Meta to face the case alone.

The strategic reshuffling has produced sharply different reactions among heavyweight investors. Bill Ackman’s Pershing Square liquidated its entire Alphabet stake in the second quarter, but the hedge fund manager clarified on May 16 that the sale was a tactical move to free up cash for a fresh position in Microsoft — not a bearish call on Google. “I remain very optimistic long-term,” Ackman said. Berkshire Hathaway, meanwhile, took the opposite view, building a massive stake of 58 million shares worth roughly $17 billion, making Alphabet the seventh-largest holding in its portfolio.

Autonomous driving continues to provide a tangible growth narrative. Waymo announced on May 15 that its service area now covers more than 1,400 square miles across 11 U.S. cities — a territory larger than Rhode Island. In California alone, the robotaxi fleet completed 1.36 million passenger trips in March, up 92% year over year. The company targets 1 million weekly rides globally by the end of 2026, supported by around 3,000 vehicles and a new assembly plant in Mesa, Arizona.

All eyes now turn to the Google I/O developer conference, which kicks off Tuesday, May 19. Bank of America analysts expect key announcements, including the next-generation Gemini 4 large language model, deeper integration of autonomous AI agents into Chrome, Gmail, and Android, and early details on Project Aura — a line of AI-powered smart glasses slated for late 2026. The stock ended the week at €341.45, just shy of its 52-week high of €344.60, after gaining roughly 27% year to date. With the forward price-to-earnings ratio sitting around 30, above its historical average, the market’s reaction to I/O will test whether that premium is justified.