Alphabet sold $20 billion in corporate bonds across seven tranches, tapping debt markets to fund expanding artificial intelligence infrastructure, according to a disclosure on Tuesday. The notes mature between 2029 and 2066, and the company may also launch a sterling offering, potentially including a rare 100-year bond.
The move reflects a broader trend among major tech companies relying more on debt to finance AI and data center investments. U.S. tech giants, including Amazon, Google, Meta, Microsoft, and Oracle, issued $121 billion in corporate bonds last year. Alphabet plans up to $185 billion in capital expenditure for 2026, with most spending directed at data centers and AI chips.
Analysts note that century bonds are typically reserved for entities with predictable cash flows, underscoring investor confidence in long-term AI investments despite limited near-term payoffs. Oracle recently completed a $25 billion bond sale, signaling a continued appetite for financing AI expansion through debt in the sector.
Alphabet’s bond issuance comes as a related development, with its shares falling 5% after reporting strong Q4 revenue of $113.8 billion while projecting substantial AI-related spending for 2026.
