Big Tech turns to century-long debt as artificial intelligence spending explodes
MARKET INSIDER – Alphabet is making a bet not just on artificial intelligence—but on its own relevance a century from now. The Google parent is selling a rare 100-year bond as part of a massive debt raise, marking the first time since the dot-com era that a major technology company has tapped markets with such ultra-long maturity. The move signals how dramatically Big Tech’s financial playbook is changing as AI infrastructure costs soar.
According to media reports, Alphabet has issued $20 billion in U.S. dollar bonds across seven tranches, alongside a £5.5 billion sterling offering that includes the century bond—an instrument more commonly associated with sovereign governments and regulated utilities than Silicon Valley. The longest-dated U.S. notes mature in 2066, while the sterling tranche stretches a full 100 years into the future.
Century bonds all but vanished after 2022, when aggressive interest-rate hikes ended the era of cheap money that followed the global financial crisis. Their return now underscores both the scale of AI investment underway and investors’ willingness—at least for now—to underwrite it. “This is an extraordinary period of technological change,” said Jason Granet of BNY, calling Alphabet’s issuance emblematic of the capital intensity sweeping the tech sector.
The backdrop is a historic surge in spending. Capital expenditures from Alphabet, Microsoft, Amazon, and Meta Platforms are expected to exceed $630 billion this year, much of it directed toward data centers, power infrastructure, and AI chips. Once celebrated for asset-light business models and fortress balance sheets, Big Tech is increasingly resembling long-term infrastructure builders.
That shift is beginning to unsettle investors. While debt issuance has surged, tangible productivity gains from AI adoption remain limited across most industries. Some analysts warn that returns may lag the capital being deployed. Still, demand for Big Tech paper remains strong. The so-called AI hyperscalers—including Oracle, which disclosed a $25 billion bond sale earlier this month—issued $121 billion in U.S. corporate bonds last year, according to BofA Securities.
Market watchers see Alphabet’s century bond as a symbolic turning point. “These instruments are usually reserved for governments with predictable tax revenues,” said Lale Akoner of eToro. “The fact that investors are willing to price 100-year risk around AI tells you how strongly they believe this technology will reshape the economy.”
The deeper message is global. Artificial intelligence is no longer a software upgrade—it is becoming critical infrastructure, financed over generations. By locking in capital for decades, Alphabet is effectively declaring that AI will define not just the next business cycle, but the next era of economic growth. Whether that confidence proves visionary or premature will shape markets long after today’s bondholders are gone.
