Alphabet’s Bond Bonanza: A Waughian Take on Century-Long Debt

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Alphabet has startled the ledger with a $20 billion U.S. bond sale, surpassing all sober forecasts as the hyperscalers indulge in a grand borrowing spree to fund their colossal appetite for artificial intelligence.

The AI Capex Explosion

In a display that reads as either quantum confidence or mere market theatre, Google’s parent Alphabet (GOOGL) tapped the U.S. high-grade bond market on Feb. 9 for a dazzling $20 billion. The issue, which breezed past initial expectations of $15 billion thanks to a chorus of investors, is part of a broader “hyperscaler” borrowing binge that, as market sages mutter with a mixture of awe and alarm, is altering the very texture of credit.

Yet the true tremor lay not in the sum, but in the term. A Financial Times report suggests Alphabet was weighing a debut sterling issue that could include a 100-year bond before the Monday announcement. If realized, this would be the first such long-legged venture by a tech titan since the late 1990s, securing capital until 2126 and prompting a certain ancient mariner to wonder about the ships that never sail.

The Big Six hyperscalers-Amazon, Alphabet, Meta, Microsoft, Oracle, and Apple-are locked in what market veterans describe as one of the grandest capital expenditure cycles in history. They are projected to spend somewhere between $500 billion and $650 billion this year, with borrowings of up to $400 billion, a sharp ascent from $121 billion in 2025.

According to a Reuters report, total U.S. corporate bond issuance is forecast to reach a record $2.46 trillion in 2026, an 11.8% jump from the prior year.

“AI has ploughed into new sources of capital that weren’t even on the diary a year hence,” says Karthik Nandyal, co-founder of Credcore. “Pricing and risk models from early 2025 are being politely kicked out of the room.”

Meanwhile, the talk of a 100-year bond has sparked a miniature tempest across social media and financial forums, with sentiment split between admiration and outright skepticism. On X, the famed “Big Short” investor Michael Burry flagged the move as a potential horizon of peril. He drew a parallel to Motorola’s 100-year issue in 1997-the same year the company rode high before a long decline. “Confidence often masks the coming stumble,” he quipped to his followers.

On Reddit, users wonder whether any tech giant can endure a century of economics. One top comment observed: “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.” Others argue the bond is a masterstroke, tapping into the “structural appetite” of UK pension funds and insurers in need of ultra-long assets to match century-long liabilities.

FAQ ❓

  • 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, a rare creature 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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2026-02-10 14:17