Alphabet Plans 100-Year Bond Issue to Raise Massive Funds for AI Expansion

New Delhi: Google’s parent company Alphabet Inc. is preparing to launch an unusual and long-term fundraising initiative by issuing a 100-year bond, a move rarely seen in the technology sector. The company is aiming to raise a significant amount of capital to stay ahead in the global Artificial Intelligence (AI) race and support its future expansion plans.

This marks the first time in nearly three decades that a major tech firm has planned such a bond issue. The last notable instance was in 1996, when technology giant IBM issued a similar long-duration bond.

Part of Alphabet’s First Pound-Denominated Debt Plan

According to a report by the Financial Times, Alphabet’s proposed 100-year bond is part of its first attempt to raise debt in British pounds. Alongside this, the company is also planning to raise around $20 billion through US dollar bonds. Additionally, Alphabet is preparing to issue bonds in Swiss francs as well.

Investor Demand Crosses $100 Billion

Bloomberg reported that Alphabet initially planned to raise $15 billion, but due to overwhelming investor interest — with orders exceeding $100 billion — the company decided to increase the total borrowing amount.

The US dollar bond issuance has reportedly been divided into seven parts, with the longest maturity being a 40-year bond, set to mature in 2066.

Market sources indicated that demand has been exceptionally strong, especially for the shorter-term three-year bonds, reflecting high investor confidence in Alphabet’s long-term financial stability.

Why Alphabet Is Issuing Bonds in Multiple Currencies

A banker associated with the deal explained that issuing bonds in multiple currencies such as pounds, dollars, and Swiss francs helps Alphabet attract a broader range of global investors. It also reduces dependency on the US dollar market, where increasing demand from big tech companies could eventually disturb the balance between supply and investor appetite.

Moreover, interest rates in the pound market are currently lower than in the dollar market, making the 100-year bond a potentially cheaper and more profitable borrowing option for Alphabet.

Massive Spending Planned for 2026

Alphabet recently indicated that it may spend up to $185 billion this year on operations and business expansion, reflecting the huge investments required for AI infrastructure, data centers, cloud technology, and innovation.

Alphabet Among World’s Most Valuable Companies

Alphabet remains one of the world’s most valuable companies. As per Tuesday’s closing figures, the company’s market capitalization stood at approximately $3.854 trillion, making it the third-largest company globally by market value.

Only Nvidia (around $4.590 trillion) and Apple (around $4.022 trillion) are currently ahead of Alphabet. Other US giants in the top five include Microsoft ($3.071 trillion) and Amazon ($2.221 trillion).

Strategic Move in the AI Race

Alphabet’s decision to raise long-term debt signals its determination to remain a global leader in AI-driven technology. With the AI competition intensifying worldwide, the company is positioning itself for decades of innovation and growth — even if it means borrowing for the next 100 years.