Google parent Alphabet Inc. on Tuesday raised nearly $32 billion in debt in less than 24 hours to fund its artificial intelligence initiatives, marking record corporate bond sales in the sterling and Swiss
franc markets, according to Bloomberg.
The transactions represent the largest-ever corporate bond sales in the UK and Swiss markets, underscoring strong credit market appetite to finance the massive funding needs of tech giants competing in the AI space.
The deals followed Monday’s $20 billion debt sale. The sterling issuance included an ultra-rare 100-year note — the first such long-maturity bond by a technology company since the dot-com era, Bloomberg reported.
Alphabet raises $32 billion in bonds
Demand was robust across tranches, reaching record levels for a sterling corporate deal. The 100-year bond drew nearly 10 times orders for the £1 billion (about $1.4 billion) on offer. It was priced at 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.
The wide range of maturities across markets catered to diverse investors, including asset managers, hedge funds, pension funds and insurers that typically prefer longer-dated debt.
The fundraising came less than a week after Alphabet said its capital expenditure could climb to as much as $185 billion this year — nearly double last year’s spending — to support its AI ambitions.
Tech firms brace for massive AI spending
Oracle Corp. recently raised $25 billion for its AI plans, attracting $129 billion in demand.
Other technology majors, including Meta Platforms Inc. and Microsoft Corp., have outlined significant spending plans for 2026. Morgan Stanley estimates that borrowing by hyperscalers — large cloud-computing companies — could reach $400 billion this year, up from $165 billion in 2025.
“Hyperscalers will keep coming and big,” said Andrea Seminara, chief executive of Redhedge Asset Management LLP. “They need to issue more, so they are testing all available pockets of demand. And it will be the same for everyone.”
However, the surge in borrowing has raised concerns about potential pressure on bond valuations. With securities trading at historically expensive levels, some investors are also questioning the durability of the AI boom and its impact on related sectors such as Software-as-a-Service.
To ease supply concerns, Alphabet diversified its fundraising across niche markets, while Oracle limited the size of its offering to avoid flooding the market.
100-year bond: Key details
Alphabet’s 100-year note is the first such issuance by a tech firm since Motorola sold similar debt in 1997, Bloomberg data showed. Typically, governments and institutions such as universities dominate the century-bond market, as corporate issuers face risks including acquisitions, business model disruption and technological obsolescence.
“I could not justify taking such a long-maturity bond in most companies — especially not one subject to an ever-changing landscape,” said Alex Ralph, co-portfolio manager at Nedgroup Investments Global Strategic Bond Fund. “100-year bonds tend to have a habit of marking market peaks.”
Still, strong demand from UK pension funds and insurers has made sterling markets attractive for long-dated issuances. Global companies have also increasingly tapped the Swiss franc bond market to diversify funding sources. In 2025, US firms including Thermo Fisher Scientific Inc. and Caterpillar Inc. raised Swiss franc-denominated debt.
Alphabet also tapped the euro bond market in November, raising Euro 6.5 billion (about $7.7 billion). Combined with earlier issuances, it became the largest borrower in the euro market in 2025, according to Bloomberg data.
The £5.5 billion (around $7.5 billion) sterling offering surpassed the previous UK corporate record — a £3 billion sale by National Grid Plc in 2016. In Switzerland, Alphabet’s deal exceeded the prior record of 3 billion Swiss francs (about $3.9 billion) raised by Roche Holding AG.
Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged the sterling and Swiss franc offerings, with Barclays Plc, HSBC Holdings Plc and NatWest Group Plc also participating in the sterling deal. BNP Paribas SA and Deutsche Bank AG were involved in the Swiss franc issue.
