Alphabet Inc., the parent company of Google, is launching a significant debt issuance in European markets, aiming to raise at least $9.4 billion to fund its massive artificial intelligence infrastructure expansion. This move follows a recent $20 billion U.S. dollar bond offering, bringing the company's total fundraising to support an estimated $185 billion in capital expenditure this year, much of it tied to AI data centers, specialized chips, and next-generation technologies.
The European offering consists of two parts. In the United Kingdom, Alphabet plans to issue roughly £4.5 billion ($5.8 billion) in sterling-denominated bonds with maturities ranging from 3 to 32 years. Notably, this tranche is expected to include an ultra-rare 100-year "century bond," which would be the first such issuance by a technology company since Motorola's in 1997. In Switzerland, the company aims to raise a minimum of 2.45 billion francs ($2.6 billion) through bonds with maturities of 3 to 25 years.
The proposed 100-year sterling bond has drawn significant attention, as century bonds are typically associated with blue-chip industrial giants or governments with predictable cash flows, not fast-moving tech firms. The bond's main buyers are expected to be insurance companies and pension funds, such as Prudential, Aviva, and Genworth, which seek long-dated assets to match their decades-long liabilities. Reports suggest Alphabet's current bond sale has attracted over $100 billion in demand across currencies, signaling strong investor appetite.
Analysts view this aggressive debt strategy as a reflection of a broader shift in Big Tech financing. Companies like Alphabet, Microsoft, Amazon, and Meta are projected to have combined capital expenditures of at least $630 billion this year, driven by AI. This spending wave is transforming how investors perceive these firms—from cyclical tech companies to long-term infrastructure providers. "The ability of a tech company to issue a 100-year bond shows how investors are increasingly treating hyperscalers as long-term infrastructure rather than cyclical tech," said Lale Akoner, global market analyst at eToro.
Despite the confidence, some investors express concerns about whether AI investments will generate sufficient returns to justify the rising leverage. Alphabet's stock (GOOG) trades near $324.40, having gained over 74% in the past year, reflecting market optimism about its AI leadership amidst the spending surge.
