Alphabet Inc. launched a 100-year sterling bond this week, marking the first century-long debt issuance from a technology company since Motorola's 1997 offering. The Google parent company's bond sale targets approximately $1 billion in British pounds as part of a broader $20 billion multi-currency fundraising effort.
The century bond represents a direct bet on Alphabet's longevity through 2126, when the debt matures. Only three entities have previously issued sterling-based century bonds: the University of Oxford, the Wellcome Trust, and French energy giant EDF. Sovereign nations like Austria, Mexico, and Argentina have issued similar long-dated debt in other currencies.
Investor demand for Alphabet's debt reached $100 billion, five times the offering size according to Bloomberg data. The Nasdaq composite index gained 1% on Monday as markets reacted to the successful bond placement.
Alphabet's capital expenditure plans drive this unprecedented borrowing. The company announced last week it will spend $175 billion to $185 billion this year on artificial intelligence infrastructure, more than double its 2025 investment of $91.4 billion. This exceeds Wall Street expectations of approximately $120 billion for 2026.
"a very healthy financial position"
Chief Financial Officer Anat Ashkenazi stated the company will maintain this despite the massive spending increase. Alphabet reported $129 billion in operating income for 2025, providing substantial cash flow to support its expansion.
The bond sale includes seven tranches across multiple currencies, with the longest US dollar portion maturing in 2066. Initial pricing discussions placed the 2066 bond at 120 basis points above US Treasuries, though strong demand tightened spreads to 95 basis points.
JPMorgan, Goldman Sachs, and Bank of America lead the US dollar bond offering. Deutsche Bank, Royal Bank of Canada, and Wells Fargo manage the sterling and Swiss franc portions, including the century bond.
Alphabet's November bond sale raised $17.5 billion with $90 billion in orders, while Oracle Corporation's recent $25 billion bond sale attracted $129 billion in orders, setting a record for corporate debt demand. These debt offerings fund what analysts describe as a massive AI infrastructure race.
Morgan Stanley analyst Brian Nowak suggested Alphabet could reach $250 billion in annual spending by 2027, with total industry capital expenditure reaching $3 trillion by 2029. The four largest US internet companies generated $200 billion in free cash flow last year and maintain over $420 billion in combined cash reserves, providing significant financial advantage over AI startups like OpenAI and Anthropic.
"a meaningful moat"
Deutsche Bank analysts characterized Alphabet's spending as building this against competitors. The company's $40 billion Texas investment announced in November 2025 will create three new data center campuses to support AI development.
Alphabet's stock rose 2% on Tuesday despite a 1.2% increase in the VIX volatility index, which typically moves inversely to equity prices. The divergence suggests investors view Alphabet's funding access as strong despite broader market uncertainty.
The century bond issuance tests investor confidence in technology companies' long-term viability. Alphabet, founded 28 years ago, joins institutions like the 800-year-old University of Oxford in accessing century-long financing. Disney issued "Sleeping Beauty" century bonds in 1993, while Coca-Cola and IBM have also sold debt maturing near the end of the 21st century.
Market observers note the bond's success indicates strong institutional belief in AI's major potential. However, some analysts warn that excessive spending could create a technology bubble similar to the dot-com era. IBM and Motorola both issued century bonds in the 1990s before the 2000 market correction.
Alphabet's fourth-quarter revenue reached $113.8 billion, exceeding analyst expectations of $111.4 billion. Google Cloud revenue grew 48% year-over-year to $17.7 billion, surpassing the $16.2 billion consensus estimate.
The company's AI app Gemini now serves more than 650 million monthly active users. Cloud services backlog increased to $155 billion in the third quarter, driven by demand for AI computing resources.
Alphabet shares have gained 6% in 2026 following a 65% increase last year. The company initiated its first dividend in 2024 alongside a $70 billion share repurchase authorization, both partially financed through bond issuances.
