Google commits over $15B to AI infrastructure in Finland

High-grade debt issuance surged to $57 billion in the first two days of September, potentially leading to a fourth consecutive monthly record. September's supply could exceed $200 billion, surpassing last year's $189 billion. Key deals include GlaxoSmithKline's $6.5 billion offering and UBS's $6 billion print. AI debt spreads remain tight, but yields have risen. M&A-related debt issuance increased to 20% in August, the highest since May.

Microsoft (MSFT) and Alphabet (GOOGL) reported earnings, with Azure growing 43% and Google Cloud surging 82%. Alphabet's valuation is cheaper, but Microsoft generated $20B in free cash flow while Alphabet's turned negative. Analysts highlight AI capex ROI as a key risk for both.

Greg Abel, successor to Warren Buffett, now oversees Berkshire Hathaway's $360 billion portfolio, with 82% concentrated in 10 stocks. Apple, American Express, and Alphabet are top holdings. Abel has added tech stocks and maintained financial stocks as key investments. Buffett's 'indefinite' holdings, like Coca-Cola, remain.

Alphabet (GOOGL) stock has underperformed recently, but its TPU chip sales to customer data centers, started in Q2 2026, may offer upside. Cloud backlog grew to $514B, with $260B expected as revenue in 24 months. Cloud revenue grew 82% YoY to $24.8B, driving segment operating income to triple YoY. Management plans to increase third-party capacity, potentially pressuring margins and free cash flow, with 2026 capex guidance raised to $195B-$205B.

Alphabet (GOOGL) signed its first nuclear deal, extending Finland's Loviisa reactor through 2050 and committing 13 billion euros to AI infrastructure. The deal involves a 1 billion euro investment in the aging reactor, with Fortum's shares rising on the news. Google's Q2 FY26 capex was $44.92 billion, up 100.14% year over year, with free cash flow at negative $5.86 billion and long-term debt increasing to $98.2 billion.

Google plans to invest $15.1B in Finland, including a 22-year power deal with Fortum to keep the Loviisa nuclear plant operational. The agreement supports Fortum's €1B modernization and secures 50% of Loviisa's output from 2030-2049. Finland's cold climate and carbon-free grid make it ideal for Google's data centers.