Alphabet has issued a £10 billion, 100‑year bond, the first of its kind from a major tech firm, to lock in cheap financing for its massive AI‑infrastructure rollout. The ultra‑long debt gives the company a century‑long runway, while offering investors a stable yield and a bet on Alphabet’s enduring cash flow and growth prospects.
Why Alphabet Chose a Century‑Long Bond
Investors are confident that Alphabet will still be thriving in 2126, so the company can secure financing at today’s rates instead of repeatedly refinancing. By tapping the ultra‑long end of the capital‑markets curve, Alphabet matches the long life‑cycle of data‑center projects and custom silicon development.
Financing the AI Infrastructure Push
The bond underwrites a $185 billion spend on AI infrastructure, covering new data‑center capacity, next‑generation chips, and generative‑AI services. With this capital, you’ll see faster rollout of advanced models and potentially new consumer products that were previously out of reach.
Implications for Investors
Oversubscription of the issue shows that the market still views big‑tech as a safe harbor, even with multi‑year high interest rates. The 100‑year tenor acts as a hedge: investors lock in a yield now and collect it for generations, betting on Alphabet’s robust cash flows.
Impact on the UK Market
Issuing the bond in sterling signals confidence in the UK’s financial stability. It could encourage other tech firms to follow suit, deepening Britain’s role as a hub for long‑term financing and strengthening the pound’s appeal to global investors.
Risks and Considerations
While Alphabet’s balance sheet is strong—cash exceeds $200 billion—ultra‑long bonds can become risky if the issuer’s credit profile weakens. Future regulatory penalties or market disruptions could test the durability of a century‑long obligation.
Industry Perspective
Senior fixed‑income analyst: “A 100‑year bond aligns perfectly with the long‑term nature of AI assets. Locking in today’s rates can be cheaper than rolling over short‑term debt every few years.”
Google data‑center engineer: “Having certainty about financing lets us plan capacity expansions without worrying about quarterly funding gaps. It’s a quiet but powerful enabler for the massive AI workloads we’re building.”
