In a move that signals either supreme confidence or a desperate arms race, Google parent Alphabet (GOOGL) tapped the U.S. high-grade bond market on Feb. 9 for a staggering $20 billion. The sale, which blew past initial expectations of $15 billion due to massive investor demand, is part of a broader “hyperscaler” borrowing boom that analysts say is fundamentally reshaping the credit landscape.
However, the real shockwave didn’t come from the dollar amount, but from the duration. According to a Financial Times report, Alphabet was weighing a debut sterling offering that could include a 100-year bond before the Monday announcement. If realized, this would be the first such move by a tech giant since the late 1990s, locking in capital until 2126.
The Big Six hyperscalers—Amazon, Alphabet, Meta, Microsoft, Oracle, and Apple—are locked in what market veterans describe as one of the largest capital expenditure cycles in history. They are projected to spend from $500 billion to $650 billion this year with borrowings of up to $400 billion, up from $121 billion in 2025.
Read more: Are Markets in a Bubble? Top Economists See Strength — With Caveats
According to a Reuters report, total U.S. corporate bond issuance is projected to hit a record $2.46 trillion in 2026, an 11.8% jump from the previous year.
“AI has dug into new sources of capital that weren’t even on the radar a year ago,” says Karthik Nandyal, co-founder of Credcore. “Pricing and risk models from early 2025 are already being thrown out the window.”
Meanwhile, the talk of a 100-year bond has ignited a firestorm across social media and financial forums, with sentiment split between awe and intense skepticism. On X, famed “Big Short” investor Michael Burry flagged the move as a potential market peak. He drew a parallel to Motorola’s 100-year bond issuance in 1997—the same year the company reached its historical peak before a long decline. “Confidence often masks the coming stumble,” he quipped to his followers.
On Reddit, users are questioning the staying power of any tech company over a century. One top comment noted: “Lending money to a tech company for 100 years is a bet that AI won’t disrupt Google the way Google disrupted the phone book.” Conversely, some analysts argue that the bond is a masterstroke, tapping into the “structural appetite” of UK pension funds and insurers who need ultra-long-duration assets to match their century-long liabilities.
- Why did Alphabet issue $20B in bonds? To fund hyperscaler capital spending amid record AI‑driven demand.
- What makes the deal unusual? Alphabet is weighing a 100‑year sterling bond, rare in tech history.
- How big is the hyperscaler borrowing boom? The Big Six may borrow up to $400B in 2026, reshaping credit markets.
- Why does a century bond matter in the UK? It aligns with pension funds’ need for ultra‑long assets to match liabilities.
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