Alphabet to issue rare 100-year sterling bond amid expanded AI-linked debt offering- FT

Alphabet Inc., the parent company of Google, prepared to issue a rare 100-year sterling-denominated bond in the London financial markets on Wednesday as part of an expanded debt offering designed to finance the company’s massive investments in artificial intelligence. This strategic move marks a significant shift in corporate financing, as the tech giant seeks to capitalize on investor demand for long-duration assets while securing ultra-long-term capital at current interest rates. By tapping into the British pound market with a century-long maturity, Alphabet aims to diversify its investor base and fund the capital-intensive infrastructure required to maintain its dominance in the global AI race. The decision to issue a 100-year bond, often referred to as a "century bond," is a bold maneuver typically reserved for sovereign nations or established academic institutions rather than fast-moving technology firms. This offering reflects Alphabet’s confidence in its long-term corporate longevity and its commitment to the evolving AI landscape. Market analysts suggest that by locking in borrowing costs for a century, the company is insulating itself against future market volatility while funding the construction of new data centers and the acquisition of the high-performance semiconductors necessary for generative AI development. This sterling-denominated debt issuance is part of a broader multi-tranche offering that includes more traditional shorter-term notes. The move comes at a time when major technology companies are under increasing pressure to prove the ROI of their AI expenditures, leading to a surge in high-grade corporate bond activity. For the London market, Alphabet’s entry provides a significant boost in liquidity and prestige, signaling that despite global economic shifts, the UK capital remains a vital hub for transformative corporate finance. The success of this 100-year bond will likely serve as a bellwether for how other Big Tech firms approach long-term debt in an era defined by rapid technological disruption.