Alphabet, the parent company of Google, has issued a rare 100-year sterling bond as part of a wider $20 billion global debt program. The move attracted strong demand, especially from UK pension funds and insurance companies, which seek long-term assets to match future liabilities. The £1 billion bond reportedly received nearly ten times more orders than available supply.
However, market strategists say the deal highlights growing concerns about a potential AI-driven debt bubble. Alphabet plans to spend up to $185 billion in capital expenditure this year, largely focused on expanding AI infrastructure and data centers. Other tech giants, including Amazon, Microsoft, and Oracle, are also increasing borrowing to fund artificial intelligence growth.
While borrowing costs remain relatively low for highly rated companies, experts warn that issuing a 100-year corporate bond enters relatively “untested waters.” Unlike governments, corporations face business risks such as technological disruption, competition, and shifting market trends.
Supporters view the bond as a smart strategy to diversify funding sources beyond the U.S. dollar market. Critics, however, see it as a possible sign of late-cycle credit market exuberance linked to the global AI race.
The long-term success of this bold financing move will depend on Alphabet’s ability to remain innovative, profitable, and competitive over the coming decades
