Alphabet Issues Landmark 100-Year Sterling Bonds to Fund Massive AI Investment
According to the Economic Desk of Webangah News Agency, sources familiar with the matter confirmed to Bloomberg that Alphabet is pricing its unprecedented 100-year bonds in pound sterling.
Data compiled by Bloomberg indicates this issuance represents the first time a technology firm has sold debt with such an extended maturity since Motorola’s similar offering in 1997. Historically, 100-year bonds have been dominated by sovereign entities and institutional investors such as universities, as factors like long-term business models and technological obsolescence make such long-dated corporate financing highly unusual.
However, the intense borrowing requirements necessary for technology companies to maintain a competitive edge in the burgeoning field of artificial intelligence are driving a return to these extremely rare long-term transactions. Alphabet recently announced its capital expenditure projection for the current year will reach $185 billion, doubling last year’s figure, specifically to finance its robust AI roadmaps.
This 100-year sterling bond issuance is taking place alongside a multi-tranche sale in the US dollar market. Furthermore, robust demand from UK pension funds and insurers has established the sterling market as an attractive venue for issuers seeking extended financing periods.
Excluding government issuers, only a few entities, including Electricité de France, Oxford University, and the Wellcome Trust Limited charitable foundation, have previously issued 100-year bonds in this currency, according to Bloomberg data. All those issuances occurred in 2021, a year when sterling investment-grade bond yields reached historical lows, as measured by Bloomberg indices.
Looking ahead, other major technology firms, including Meta Platforms and Microsoft, have also disclosed substantial spending plans for 2026. Morgan Stanley anticipates that borrowing by the massive cloud computing firms, known as hyperscalers, could surge to $400 billion this year, a significant increase from $165 billion in 2025, although 100-year bond issuances are expected to remain infrequent.
