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Alphabet Inc. has executed a massive $31.51 billion global bond sale, headlined by a rare 100-year “century bond,” as the Google parent company aggressively scales its financial architecture to support a capital-intensive pivot toward artificial intelligence.
The issuance marks the first time a major technology firm has sold a century bond since Motorola’s 1997 offering, signaling a profound shift in how Silicon Valley views its long-term capital requirements. Traditionally the preserve of sovereign governments and regulated utilities with highly predictable cash flows, the century bond suggests that investors now view Big Tech’s AI infrastructure as a permanent fixture of the global economic landscape.
The capital raise was diversified across multiple currencies, reflecting Alphabet’s status as a premier global borrower. The company sold £5.5 billion in sterling-denominated bonds, including a £1 billion 100-year tranche carrying a 6.125% interest rate. Demand for the century bond was overwhelming, with orders exceeding the offering by nearly tenfold. Additionally, the company raised 3.055 billion Swiss francs ($3.98 billion) and $20 billion in U.S. dollar-denominated debt with maturities ranging from 2029 to 2066.
The Infrastructure Pivot
The scale of the borrowing highlights a fundamental transition within the technology sector. For decades, firms like Alphabet and Microsoft operated on “asset-light” models, where value was derived primarily from software and intellectual property. However, the generative AI era requires immense physical infrastructure, including specialized data centers and high-cost semiconductor arrays.
Industry analysts estimate that capital expenditure from the “Big Four”, Alphabet, Microsoft, Amazon, and Meta, will exceed $630 billion this year alone. By locking in long-term debt, Alphabet is securing the liquidity necessary to sustain these investments as the industry moves toward a more capital-intensive era.
“We are living through an extraordinary period of technological change,” noted Jason Granet, Chief Investment Officer at BNY. “A 100-year debt issuance out of Google is representative of the massive investment currently flowing into market technology.”
Investor Risk and the Absence of Covenants
Despite the high demand, the deal has drawn scrutiny from credit analysts due to its unique structure. According to Covenant Review, Alphabet’s new bonds lack the restrictive covenants typically found in tech debt, such as interest coverage ratios that protect lenders. Furthermore, the bonds are not guaranteed by Alphabet’s subsidiaries and lack protection against future subordination.
While Alphabet’s robust balance sheet makes it a low-risk issuer today, some analysts warn that the lack of protections sets a “bad market precedent” for future tech issuances. However, for many institutional investors, including pension funds and life insurers, the opportunity to secure long-dated, high-quality corporate paper outweighs the lack of restrictive clauses.
Broader Strategic Implications
Alphabet’s move comes at a time of broader shifts in global finance, as major players navigate a high-interest-rate environment and strategic sovereignty. As explored in Africa 2026: Navigating the New Frontiers of Energy, Finance, and Strategic Sovereignty, the ability to command long-term capital is becoming a defining feature of global power, whether for corporations or emerging markets.
For the technology sector, the success of this bond sale suggests that the “AI fatigue” recently felt in equity markets has not yet dampened the appetite of debt investors. While critics argue that the productivity gains from AI have yet to justify the massive spending, Alphabet’s 100-year commitment indicates that the company, and its lenders, are betting on a century of dominance.