Don’t look now, but Alphabet wants to rewrite the tech funding playbook. In an unprecedented move made by big tech thus far, Alphabet raised $20 billion through a jumbo bond sale — far exceeding its original $15 billion target.
In a major shift in how high-growth tech is financed, Google’s parent company Alphabet just raised $20 billion in a bond sale to fund and fuel AI growth. Alphabet is also planning a rare 100-year bond, denominated in British sterling — the first such century-long corporate debt by a technology company since the late 1990s.
Why is this surprising? Because in this move-fast-break-things era, Alphabet is inviting investors to think in terms of generations.
The bond sale is similar to any other bond sale in that it will support long-term infrastructure build-out required for Alphabet’s AI ambitions. This includes things like: Data centers to host AI computations and cloud services, AI chips and hardware, servers, networking gear, and storage systems needed to run and scale AI services globally. This infrastructure is critical to support Alphabet’s AI platforms, like Gemini, its cloud AI offerings, and other advanced machine-learning systems.
Unlike cash-rich tech firms that historically funded growth from internal reserves, Alphabet is now tapping external capital markets at scale. The $20 billion raised in the U.S. market came in seven tranches with maturities ranging from 2029 to 2066, and it drew more than $100 billion in investor orders — one of the heaviest demand books seen for a corporate bond deal.
Investors lapping it up sends a loud and clear signal: Wall Street wants in on the AI expansion — even if that means locking money up for decades (or a century). Alphabet’s plans line up with its colossal capital expenditure ambitions; the company has forecast its 2026 AI-related spending could reach $185 billion, far more than any single year in its history.
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Historically, century bonds have been the domain of governments, utilities, or institutions like universities and trusts. Only a handful of corporate issuers have dared them — like Motorola three decades ago in 1997.
Pension funds and institutional investors are attracted to these long-term maturity bonds, who have liabilities stretching decades into the future and want assets that match that horizon. Sterling markets, in particular, offer relatively attractive long-term yields compared to U.S. dollar debt, making it the right choice for Alphabet’s debut overseas offering.
