Alphabet has recently re-entered the bond market, including a notable $31.51 billion global bond raise in February 2026. This comes as the company seeks to fund its extensive expansion into artificial intelligence. Part of this bond offering included a rare 100-year bond, which raised 1 billion pounds ($1.37 billion) with a 6.125% interest rate. Demand for this century bond was nearly ten times the amount sought.
This borrowing surge by Alphabet mirrors a broader trend among major tech companies, including Microsoft, Amazon.com, and Meta Platforms, which are all heavily investing in AI infrastructure. Their combined capital expenditure is projected to reach at least $630 billion this year, primarily directed towards data centers and AI chips. This aggressive spending has led to an increase in corporate borrowing across the sector.
Despite the significant influx of debt, the credit market for these companies appears safer due to their high credit ratings. Alphabet, along with Meta Platforms and other tech giants, are rated in the AA tier. However, the overall AI-related debt raised globally has exceeded $570 billion since 2025, leading to soaring borrowing costs and increased jitters in the market. This has also resulted in a jump in credit-default swaps for companies like Meta, Oracle Corp, Alphabet Inc., and SpaceX.
