Feb 11 • 16:55 UTC 🇦🇷 Argentina La Nacion (ES)

Google sells a 100-year bond to finance its expansion in AI

Google has issued a rare 100-year bond as part of a global bond offering to finance its expansion in artificial intelligence, amidst rising debt among US tech giants.

Alphabet, Google's parent company, has recently made headlines by selling an unusual 100-year bond, part of a substantial global bond issuance totaling $31.51 billion. This move comes at a time when increased spending driven by artificial intelligence is pushing major technology companies in the United States to accumulate more debt. Notably, this marks the first instance of a centennial bond being sold in the tech industry since Motorola made a similar move in 1997, highlighting a significant shift in financial strategies among tech firms.

The issuance represents more than just a financial maneuver; it underscores the extraordinary period of technological change currently being experienced in the industry. Investment director Jason Granet from BNY noted that the issuance of such long-term debt by a tech company like Google reflects the massive investments being made in technology markets today. This approach may indicate a larger trend within the tech sector, as companies seek to leverage low-interest rates and growing market demands to fund ambitious projects in AI and other emerging technologies.

As Google positions itself to expand further into the realm of artificial intelligence, the implications of this bond sale could be far-reaching. Not only does it signal investor confidence in Google's long-term vision, but it also raises questions about the sustainability of such high levels of debt amid a rapidly evolving technological landscape. Industry analysts will be closely watching how this financial strategy plays out and its influence on both Google's future projects and overall market dynamics in tech investments.

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