In one of the largest corporate bond deals in recent times, Alphabet tapped credit markets for $32 billion, reflecting sustained appetite for AI-focused giants. This biggest-ever corporate bond sale in the UK and Swiss markets showed the enthusiasm and strong appetite in credit markets to fund the financing needs of tech giants competing in the AI space.
On Tuesday (February 10, 2026), Google parent Alphabet Inc. raised nearly $32 billion in debt in 24 hours to support its AI initiatives, according to Bloomberg. The deal hit the market less than a week after Alphabet said its capex could reach nearly $185 billion this year, marking almost double the amount it spent last year on financing its AI ambitions.
“Notably, the deals followed Monday’s $20 billion debt sale, and the sterling issue included an ultra-rare 100-year note — the first sale with such an extreme maturity by a technology firm since the dot-com era,” a Bloomberg report added.
According to the Bloomberg report, demand was high across the deals, at a record level for sterling, with the 100-year bond drawing close to 10 times orders for the £1 billion ($1.4 billion) on sale. That bond was priced at just 1.2 percentage points above 10-year UK government bonds, while the shortest tranche, a three-year note, was priced at 45 basis points over gilts.
Such a wide range of maturities in different markets meant there was something for all kinds of investors, from asset managers and hedge funds to pension funds and insurers that favor longer-dated debt. By tapping credit markets instead of issuing equity, the Google parent signals confidence in its balance sheet strength while preserving shareholder value.
Let’s understand the deal from the perspective of Google, which is worth $4 trillion. This public company has over $73 billion in free annual cash flow and is turning to debt markets to raise even more money. Google’s $126 billion cash on hand is not sufficient when it comes to its AI ambitions for the year.
Alphabet’s 100-year note was the first sale with such an extreme maturity by a technology firm since Motorola sold this type of debt in 1997. Governments and institutions, such as universities, dominate the market for 100-year bonds. For corporations, potential acquisitions, outdated business models, and technological obsolescence make such deals a rarity.
Software giant Oracle Corp. recently raised $25 billion to fund its AI plans, drawing $129 billion of demand. Meta Platforms Inc. and Microsoft Corp. have also announced huge spending plans for 2026.
From a bond market perspective, this oversubscription indicates that institutional investors are still willing to back cash-rich tech giants, even amid elevated interest rates and macroeconomic uncertainty. For equity markets, large borrowing programs can raise questions about capital allocation discipline and near-term margin pressures.
In essence, the bond sale highlights the central role large technology companies now play in shaping global capital flows.
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Massive borrowings by tech giants have already started to raise concerns about potential pressure on bond valuations. Securities are expensive by historical standards; some investors are also concerned about the longevity of the AI boom. Analysts have even shared doubts around its disruptive effects on related firms, such as the Software-as-a-Service (SaaS) sector.
Alphabet’s bond issuance reflects the evolving financial architecture behind the global AI expansion. The scale of this deal raises broader questions about how major tech firms are funding the next phase of AI infrastructure and whether debt-backed expansion could become a defining feature of this cycle. Investors and analysts will now keep a close eye on how efficiently Alphabet deploys this capital.