The global race for artificial intelligence dominance is proving to be extraordinarily expensive, as demonstrated by Alphabet’s massive fundraising efforts. In under 24 hours, the tech giant secured nearly $32 billion in debt, starting with a $20 billion bond sale in the US, followed by substantial offerings in the UK and Switzerland.

This includes a rare 100-year bond, a maturity almost never seen from technology companies, signaling strong investor confidence in Alphabet’s long-term future.

Demand was overwhelming: the US portion alone received over$100 billion in orders.

Massive Investments in AI Infrastructure

This fundraising comes on the heels of Alphabet’s announcement to spend up to $185 billion on capital expenditures in 2026, nearly double its 2025 spending.

These funds are earmarked for building critical physical infrastructure to support advanced AI, including data centers, specialized AI chips, and robust energy systems.

Alphabet is not alone in this AI spending surge. Oracle recently raised $25 billion for its AI initiatives, while Microsoft and Meta have unveiled aggressive plans for 2026.

Analysts at Morgan Stanley project that total borrowing by hyperscalers—the world’s largest cloud providers—could reach $400 billion this year, more than double 2025 levels, illustrating the immense financial demands of the AI era.

Century Bonds and Long-Term Investor Confidence

A particularly remarkable aspect of Alphabet’s bond sale is the issuance of a 100-year bond, a move rarely seen in technology.

The last major tech company to issue such a century-long bond was Motorola in the late 1990s.

This extraordinary maturity reflects investors’ willingness to make a century-long bet on Alphabet’s continued relevance in a rapidly evolving industry.

Demand was especially strong among UK pension funds and insurers, which favor very long-term assets.

Alphabet’s UK bond sale even set a record, becoming the largest sterling corporate bond deal ever.

However, some investors have expressed caution, noting that bond prices are historically high.

A key question remains: will AI generate returns sufficient to justify this enormous capital outlay?

Banks expect tech companies to continue borrowing heavily throughout 2026, and if AI underdelivers, there could be significant ramifications for the bond market.

For now, the financial markets are backing Alphabet’s strategic vision.

Its $32 billion raise underscores the company’s intent to lead the AIrace, focusing not just on software innovations such as smarter chatbots or improved search tools, but also on foundational physical infrastructure—massive data centers, cutting-edge specialized chips, and vast energy capacities—all of which require billions of dollars in upfront investment before any user-facing AI product can be launched.