Alphabet Plans Century-Long Bonds Amid AI Spending

ISLAMABAD: (Web Desk) – Google’s parent company, Alphabet, is preparing to issue bonds with a 100-year maturity as it ramps up massive investments in artificial intelligence infrastructure, according to Bloomberg data released Tuesday.

The tech giant aims to raise around $20 billion in total, including the century-long bonds maturing in February 2126. Investor interest has been intense, with orders reportedly reaching $100 billion, reflecting enthusiasm for a stake in the AI boom. Alphabet has not responded to requests for comment.

Alphabet, along with AI rivals such as Amazon, Meta, and Microsoft, is investing heavily in computing infrastructure, betting that these investments will secure a leading position in the emerging AI landscape.

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Market reaction has been mixed, with some investors expressing concern that spending on AI infrastructure may be excessive. Century-long corporate bonds are rare, particularly for Alphabet, which generates significant revenue from online advertising and could fund growth without relying on debt.

However, the urgency to lead in AI has prompted unprecedented investment in data centers, energy infrastructure, and other critical technology. Alphabet spent $91 billion on computing infrastructure last year and expects to allocate between $175 billion and $185 billion in 2026.

To support this spending surge, Alphabet has increasingly turned to long-term debt, including 50-year bonds issued late last year. While century-long bonds are not entirely new, it has been decades since U.S. companies issued them. In the 1990s, firms such as Disney, Coca-Cola, FedEx, Ford, and Motorola tapped century-long debt markets.