Alphabet Issues 100 Year Bond Amid AI Spending Surge

Faizan Farooque

Thu, February 12, 2026 at 8:26 PM GMT+9 1 min read

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This article first appeared on GuruFocus.

Alphabet (GOOGL, Financials) has issued a rare 100-year sterling bond as part of a broader $20 billion multi-currency borrowing plan, underscoring the scale of debt financing tied to artificial intelligence expansion.

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Alphabet’s first sterling century bond, 1 billion, had over 10 times more orders, according to market reports. The coupon was 120 basis points over 10-year U.K. government bonds.

Century bonds are usually issued by sovereign borrowers and seldom by corporations. Pension funds and insurers buy long-term debt to meet liabilities.

The sale is part of a U.S. dollar, euro, and Swiss franc fundraising push. The acquisition shows robust investor interest for highly rated issuers and allows Alphabet to diversify its funding source outside dollar markets, market experts said.

Alphabet said last week it anticipates capital expenditures to hit $185 billion this year, spurred by data center and AI infrastructure developments.

Some financial specialists warned that 100-year corporate debt is unproven, especially for technology businesses in fast-changing industries. The acquisition showed trust in Alphabet’s long-term stability and debt service throughout technological cycles, according to others.

Other big businesses like Oracle, Amazon, and Microsoft are borrowing more to expand AI. As AI buildout competition intensifies, investors will scrutinize how technology firms’ large-scale loan issuance influences credit spreads.

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