Alphabet is pushing the boundaries of corporate finance as it deepens its reliance on global debt markets to fund an unprecedented artificial intelligence investment cycle. The Google parent has upsized its latest bond offering to roughly $20 billion from an initially planned $15 billion, after demand reportedly surged beyond $100 billion. The move underscores how investor appetite for high-grade technology debt remains remarkably strong, even as borrowing needs across the sector accelerate.

A Rare Return of the Century Bond

At the center of Alphabet’s strategy is a potential sterling-denominated 100-year bond, a structure almost unheard of in the technology sector. If completed, it would mark the first century bond issuance by a tech company since Motorola in 1997. The significance is less about novelty and more about confidence: issuing debt that matures in the next century signals that markets view Alphabet as a durable, quasi-sovereign credit.

The U.S. dollar portion of the deal has been split into seven tranches, with the longest maturing in 2066. Initial pricing discussions pointed to a spread of about 1.2 percentage points over Treasuries, but tightening demand has reportedly pulled that closer to 0.95%. Shorter maturities proved even more attractive, with three-year bonds pricing just 0.27% above Treasuries, highlighting investors’ preference for near-term safety combined with elite credit quality.

Why Multi-Currency Matters Now

By tapping sterling and Swiss franc markets alongside U.S. dollars, Alphabet is executing a classic but increasingly important playbook: diversify funding sources to avoid saturating any single market. With hyperscalers collectively spending more than $650 billion this year on AI infrastructure, repeated dollar issuance risks overwhelming demand and pushing borrowing costs higher.

Sterling markets, in particular, offer structurally lower yields than U.S. equivalents, making them attractive for ultra-long maturities such as a 100-year bond. This allows Alphabet to lock in funding at relatively favorable rates while appealing to long-duration investors such as pension funds and insurers seeking predictable cash flows.

The transaction is being led by JPMorgan Chase, Goldman Sachs, and Bank of America, underscoring how marquee banks are positioning themselves at the center of Big Tech’s financing wave.

AI Spending Reshapes Credit Markets

Alphabet’s borrowing comes on the heels of its announcement that capital expenditure will reach about $185 billion this year, nearly double the prior year, as it scales Gemini AI models and cloud data centers. Despite holding more than $125 billion in cash, the company has opted to layer in cheap, long-term debt rather than draw down liquidity, a strategic choice that preserves flexibility while exploiting favorable credit conditions.

This approach is rapidly becoming industry standard. Oracle recently raised $25 billion in a bond deal that drew a record $129 billion in orders, while Morgan Stanley estimates hyperscalers could borrow around $400 billion in 2026 alone. If realized, that surge may drive U.S. investment-grade bond issuance to a record $2.25 trillion.

What Investors Should Watch Next

The critical question is not whether markets will absorb Big Tech debt, but how long enthusiasm can outpace concerns about AI returns. For now, Alphabet’s ability to contemplate a century bond suggests trust in both its balance sheet and its strategic direction. Still, investors will be watching closely for signs that AI spending translates into durable cash flows rather than inflated expectations.

As credit markets stretch further into the future, Alphabet’s deal may become a benchmark for how far confidence in Big Tech truly extends.