Alphabet, the parent company of Google, has announced its intention to issue rare 100-year bonds to raise funds specifically for artificial intelligence projects. This decision comes at a time when major companies in the technology sector are increasingly turning to debt instruments as a way to fund their expansion in AI infrastructure. The unusual choice of a century-long bond issuance marks a significant move in a sector that has not seen such lengthy debt offerings since the internet bubble of the late 1990s.

According to a memo reviewed by Reuters, Alphabet aims to sell bonds denominated in British pounds worth £5.5 billion (approximately $7.53 billion) as part of a five-tranche bond deal. Within this deal, the 100-year bond tranche is set to raise £1 billion (around $1.37 billion). This issuance is notably the first of its kind in the technology industry since Motorola issued similar bonds back in 1997, highlighting the rarity and ambition of this financial move.

In parallel, Alphabet has sold additional bonds worth $20 billion across a seven-tranche offering to also support its AI initiatives, with maturity dates ranging from 2029 to 2066. This wave of bond issuances signals the growing reliance of tech giants on robust financial strategies to fuel their AI aspirations, reflecting a broader trend of significant investment in artificial intelligence technologies as they reshape various industries and the economy.