Alphabet Raises $32 Billion in Record Bond Sale to Accelerate AI Expansion

Alphabet Inc., the parent company of Google, has raised nearly $32 billion in debt within 24 hours, underscoring the extraordinary capital demands of the artificial intelligence race. The record-setting bond issuance highlights both the scale of Big Tech’s AI ambitions and the deep appetite among global investors to finance these long-term transformation strategies.

The fundraising includes a historic 100-year sterling bond, marking the first such ultra-long maturity note issued by a technology company since the dot-com era, according to a media agency data.

Massive Debt Raise Signals AI Capital Arms Race

Alphabet’s multi-currency bond issuance reflects a broader trend among hyperscalers and technology giants aggressively expanding infrastructure to power generative AI, cloud computing, and data center networks.

Earlier in the week, on Monday, February 9, the company completed a $20 billion U.S. dollar bond sale, followed by additional offerings in the sterling and Swiss franc markets, bringing the total close to $32 billion.

Why AI Requires Unprecedented Capital Investment

Artificial intelligence development requires:

• Large-scale data centers

• High-performance GPUs and AI accelerators

• Advanced networking infrastructure

• Expanded cloud capacity

• Energy-intensive computing facilities

Alphabet recently indicated that its capital expenditure could rise to as much as $185 billion this year, nearly double last year’s spending, largely directed toward strengthening its AI ecosystem.

This dramatic increase aligns with an industry-wide borrowing surge. According to Morgan Stanley estimates, borrowing by hyperscalers could reach $400 billion in 2026, up sharply from $165 billion in 2025.

Record Demand Across Currencies and Maturities

Alphabet strategically issued bonds across multiple currencies and tenors to tap diverse investor pools.

Sterling and Swiss Franc Bond Highlights

• The £1 billion 100-year bond attracted nearly 10 times investor demand.

• It was priced at 120 basis points above 10-year UK government bonds.

• The three-year tranche was priced at 45 basis points over gilts.

The wide maturity range appealed to asset managers, hedge funds, pension funds, and insurance companies — particularly those seeking ultra-long-duration assets to match long-term liabilities.

The Rare 100-Year Bond — A Historic Move

First Tech Century Bond Since the Dot-Com Era

According to Bloomberg data, the last technology firm to issue a 100-year bond was Motorola in 1997.

Such ultra-long bonds are rare due to:

• Rapid technological disruption

• Evolving business models

• Long-term competitive uncertainties

Despite these risks, UK pension funds and insurers showed strong demand, making the sterling market attractive for century-long issuance.

Market Experts Express Caution

Andrea Seminara, chief executive of Redhedge Asset Management, told Bloomberg:

“Hyperscalers will keep coming big,”

He added that issuers are testing investor appetite across markets and maturities.

However, some asset managers remain skeptical. Alex Ralph, co-portfolio manager of Nedgroup Investments Global Strategic Bond Fund, said:

“I could not justify taking such a long maturity bond in most companies — especially not one subject to an ever-changing landscape."

She further added:

“100-year bonds tend to have a habit of calling the top of a market as well,”

Tech Giants Borrowing Aggressively to Fuel AI

Alphabet is not alone in turning to debt markets.

Industry-Wide Borrowing Boom

• Oracle recently raised $25 billion, drawing demand of $129 billion, to support AI initiatives.

• Meta Platforms and Microsoft have outlined major AI investment plans for 2026.

• Alphabet previously raised €6.5 billion in November, becoming the largest euro-market borrower of 2025.

• Its £5.5 billion sterling sale surpassed previous records.

• The Swiss franc issuance exceeded the prior high set by Roche Holding.

Investment banks arranging the deals included:

• Bank of America

• Goldman Sachs

• JPMorgan Chase

• Barclays

• HSBC

• NatWest

• BNP Paribas

• Deutsche Bank

Risks and Market Concerns

While investor appetite remains strong, concerns are emerging about:

• Potential pressure on bond valuations

• Sustainability of the AI investment cycle

• Spillover effects on sectors such as software-as-a-service

If AI monetisation fails to match capital deployment, leverage levels across hyperscalers could become a medium-term risk factor.

However, Alphabet’s strong balance sheet, dominant cloud presence, and AI leadership position have so far reassured credit markets.

Conclusion: AI Is Reshaping Corporate Finance

Alphabet’s near-$32 billion bond sale — including its rare 100-year note — signals a structural shift in how technology giants finance innovation. As AI becomes central to economic competitiveness, hyperscalers are locking in long-term capital to secure infrastructure dominance.

The strong investor demand suggests continued confidence in Big Tech’s AI-driven growth model. However, the scale of borrowing also reflects rising financial exposure, making the durability of AI returns a critical factor in future credit stability.

With hyperscaler borrowing projected to hit $400 billion in 2026, the intersection of AI ambition and debt markets is becoming one of the defining financial narratives of the decade.