Alphabet’s100-Year Bond: Know Why Google’s Parent Is Issuing a Rare ‘Century Bond’ in 2026

Mumbai, February 10: Alphabet Inc., the parent company of Google, is preparing to enter the ultra-long-term debt market with a rare "century bond" proposal, according to reports on February 9. The tech giant is reportedly planning a debut sterling-denominated bond sale that could include a 100-year maturity, a move that would make it the first major technology firm to issue such long-dated debt since the late 1990s. The move comes amid a massive global borrowing spree by the company to fund its aggressive expansion into artificial intelligence (AI).

100-Year Bond - A Rare Financial Instrument

A 100-year bond, often referred to as a "century bond," is a debt instrument that does not require the principal to be repaid for a full century. Typically, such long-term commitments are the domain of sovereign governments, historic universities, or traditional "blue-chip" institutions with stable, centuries-old cash flows like Disney or Coca-Cola. Google Parent Alphabet Surpasses USD 400 Billion Annual Revenue Milestone As Gemini AI Hits 750 Million Users; Elon Musk Congratulates.

Alphabet's foray into this space is highly unusual for the technology sector, where rapid innovation often leads to corporate obsolescence. The last major tech firms to issue 100-year bonds were IBM in 1996 and Motorola in 1997, just years before the dot-com bubble burst.

Funding the AI Arms Race

The primary driver for this ambitious debt offering is Alphabet's skyrocketing capital expenditure. The company recently projected it will spend as much as USD 185 billion in 2026 alone - nearly double its spending from the previous year.

Data Centers: Massive investments are required to build and maintain the specialized data centers and subsea cables that power generative AI.

Hardware: Alphabet is securing funds for custom AI chips and large-scale GPU clusters.

Strategic Flexibility: By locking in long-term capital now, the company aims to insulate its AI development from potential future shifts in interest rates or market liquidity.

Investor Demand and Market Conditions

Despite the inherent risks of betting on a tech company's status in the year 2126, early demand for Alphabet’s debt has been record-breaking. A simultaneous USD 20 billion U.S. dollar bond sale on Monday reportedly drew over USD 100 billion in orders, illustrating deep investor confidence in Alphabet’s AA+ credit rating.

Financial analysts note that the 100-year bond is particularly attractive to pension funds and insurance companies that require ultra-long-term assets to match their long-term liabilities. By issuing in British pounds (sterling), Alphabet is also diversifying its investor base and taking advantage of specific demand in the U.K. market. Waymo Fundraise: Google Parent Alphabet’s Self-Driving Unit Raises USD 16 Billion To Fuel Global Expansion, Reaches USD 126 Billion Valuation.

The 'Big Tech as Sovereign' Trend

Market experts view this move as a signal that the world's largest tech companies are increasingly being treated by investors like "quasi-sovereign" entities. With cash flows exceeding those of many developed nations, Alphabet is leveraging its financial dominance to secure capital at rates and durations that were previously unimaginable for a software company. However, some skeptics, including "Big Short" investor Michael Burry, have voiced caution. Observers point out that the 100-year bond marks a peak in corporate confidence that often precedes significant market shifts, reminding investors that no tech company has ever dominated for a century without radical transformation.

(The above story first appeared on LatestLY on Feb 10, 2026 07:19 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).