Khaberni - Alphabet, the parent company of Google, plans to price 100-year rare bonds to finance artificial intelligence programs, according to a memorandum issued by the main issue manager and reviewed by Reuters.
This type of bond is an unprecedented step in the technology sector since the internet company bubble in the 1990s, as major companies increasingly resort to debt instruments to finance their expansion into artificial intelligence infrastructure.
According to the memorandum, Alphabet will sell bonds valued at 5.5 billion pounds (about 7.53 billion dollars) in a deal of five tranches, with the 100-year bond tranche aimed at raising one billion pounds (about 1.37 billion dollars).
According to media reports, this release is the first of its kind in the technology sector since Motorola issued similar bonds in 1997.
Bonds in Seven Tranches
In a related context, Alphabet also sold other bonds worth 20 billion dollars in an offering of seven tranches today, Tuesday, to finance the artificial intelligence program, with maturities ranging between 2029 and 2066.
Issuing bonds with terms extending to a century is rare in the debt markets, as resorting to this type of issuance increased during the period of extremely low interest rates that followed the global financial crisis, before dropping sharply after 2022 as central banks moved to tighten monetary policy following the COVID-19 pandemic.
In this context, Jason Grant, the Chief Investment Officer at “BNY Bank” (BNY), said, "The current period is witnessing an exceptional transformation led by rapid technological changes," referring to the increased financial pressures accompanying the surge in artificial intelligence.
The increasing shift of major technology companies towards the bond market has raised concerns among investors, as the returns achieved so far have not matched the massive spending on artificial intelligence, with limited productivity gains for companies that have adopted these technologies.
Spending 2026
According to Reuters calculations, the total capital expenditures of Alphabet, Microsoft, Amazon, and Meta are expected to reach at least 630 billion dollars this year, most of which are focused on data centers and artificial intelligence chips.
Alphabet's revenues jumped 18% on a yearly basis during the last quarter of 2025, exceeding its total annual revenues of 400 billion dollars for the first time since its establishment in 1998.
Alphabet achieved profits amounting to 34.5 billion dollars in the last quarter, and these strong profits came amid the company's increased expenses to meet the growing demand for artificial intelligence infrastructure.
The company expects capital expenditures ranging from 175 to 185 billion dollars in 2026, doubling its spending last year to meet customer demand for artificial intelligence products.
