New Delhi, Aug. 6 -- Alphabet Inc. is looking to raise as much as $25 billion from its latest US investment-grade bond offering, a deal that is testing investor appetite for AI-related debt following a July selloff.

No final decision has been made on the size, according to people familiar with the matter, asking not to be identified as they're not authorized to speak publicly.

The Google and YouTube parent also communicated to investors on Thursday, via its bond dealers, that it plans to hold US debt sales twice annually, some of the people said. The message was likely aimed at calming investor concerns over new tech debt supply hitting the market.

Alphabet sold $20 billion of notes in February, before pricing bonds in Swiss francs, Br...