What is Alphabet's 100-year bond plan? How AI and data centres are shaping Google parent's century bond strategy

Alphabet raised $20 billion in its largest-ever US dollar bond sale-well above the $15 billion initially planned-after orders topped $100 billion, Bloomberg reported

• Alphabet launches multi-currency bond sale, including a rare 100-year UK bond
• Company raised $20B in US bonds, plans Swiss franc debut for AI expansion
• Investor demand for Big Tech debt surges as firms ramp up AI spending

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Alphabet Inc is stretching its borrowing strategy across currencies and continents as it accelerates spending on artificial intelligence, launching a massive multi-currency bond sale that includes a rare 100-year bond in British pounds. The move underscores both the scale of its AI ambitions and the extraordinary investor appetite for Big Tech debt.

Why is Alphabet selling a 100-year bond in the UK?

The century bond is part of Alphabet's debut sterling issuance, making it the first technology company to attempt a 100-year bond since IBM did so in 1996. According to the Financial Times, bankers close to the deal said issuing in pounds allows Alphabet to tap a new pool of long-term investors while benefiting from lower interest rates compared with US dollar markets, improving the economics of such an ultra-long maturity.

How big is Alphabet's multi-currency borrowing plan?

Alphabet raised $20 billion in its largest-ever US dollar bond sale-well above the $15 billion initially planned-after orders topped $100 billion, Bloomberg reported. The company is also preparing a debut Swiss franc bond sale, completing a three-currency fundraising strategy aimed at spreading demand across global markets rather than concentrating issuance in dollars.

What does the US dollar bond pricing say about investor demand?

The dollar deal is split into seven tranches. Its longest portion-a 40-year bond maturing in 2066-priced at about 0.95 percentage points above US Treasuries, tighter than earlier discussions of around 1.2 percentage points. Demand was strongest at the short end of the curve, with a three-year tranche pricing at just 0.27 percentage points over Treasuries, highlighting strong confidence in Alphabet's near-term credit profile.

Why is Alphabet borrowing so aggressively now?

The funding drive comes days after Alphabet said it could spend up to $185 billion on capital expenditure this year, roughly double last year's total, as it pours money into AI models such as Gemini, cloud services and data-center infrastructure. While long-term debt has risen to $46.5 billion in 2025, the company still holds $126.8 billion in cash, giving it significant financial flexibility.

Is this part of a broader Big Tech debt boom?

Yes. Bloomberg reported that Alphabet's deal is emblematic of a wider shift among major technology companies that were once net cash generators but are now tapping bond markets to fund the AI arms race. Oracle recently raised $25 billion in a bond sale that drew a record $129 billion in orders, underscoring the depth of investor demand.

Who are recent bond issuers? 

Will heavy issuance strain credit markets?

Morgan Stanley expects hyperscalers to borrow about $400 billion this year, up from $165 billion in 2025, potentially pushing high-grade US corporate bond issuance to a record $2.25 trillion, according to Bloomberg. Some strategists warn that the surge could widen corporate bond spreads, even if it does not signal an end-of-cycle credit downturn.

"We're not in a typical capex cycle," Andrew Dassori, chief investment officer at Wavelength Capital Management, told Bloomberg, noting that companies are now financing at scale to secure strategic advantage in AI.

Who is managing Alphabet's global bond sales?

Bank of America, Goldman Sachs and JPMorgan are leading Alphabet's bond offerings across the US, UK and Swiss markets, reflecting the global reach-and scale-of the company's financing push behind the next phase of the AI-driven transformation.