Ge Long Hui·2026-02-10 04:56Core Viewpoint - Global tech giants are accelerating fundraising through the bond market to support artificial intelligence (AI) expansion, with Alphabet's recent issuance of $20 billion in bonds being a significant example [1][2]. Group 1: Alphabet's Bond Issuance - Alphabet successfully issued $20 billion in bonds, exceeding the initial plan of $15 billion, with demand surpassing $100 billion, indicating strong investor interest [2]. - The funds raised will primarily be allocated to AI infrastructure development, with Alphabet's capital expenditure plan for 2026 projected at $185 billion, more than double that of 2025 [2]. - This issuance includes a rare 100-year bond denominated in British pounds, marking Alphabet's first entry into the Swiss and UK bond markets [2]. Group 2: Market Implications and Trends - The issuance of century bonds by Alphabet may prompt discussions among other top companies about entering the long-term bond market, although analysts believe such issuances will remain exceptional rather than common [3]. - The pound-denominated bond issuance is driven by strong demand from UK pension funds and insurance companies for long-term financing, especially as global interest rates approach their peak [3]. Group 3: Broader Industry Trends - Other tech giants, including Amazon, Meta, Microsoft, and Oracle, are also increasing their AI investments, with a total of $121 billion in corporate bonds issued last year, significantly higher than the average of $28 billion from 2020 to 2024 [4]. - Oracle recently raised $25 billion through a bond issuance, setting a market record with peak orders reaching $12.9 billion [5]. - Morgan Stanley projects that borrowing by large-scale data center operators will reach $400 billion this year, up from $165 billion in 2025, potentially pushing high-rated corporate bond issuance to a record $2.25 trillion in 2026 [5]. Group 4: Risks and Challenges for Alphabet - As consumer usage of generative AI applications increases, traditional internet search scenarios are being pressured, which could structurally impact Google's dominant advertising revenue model [5]. - Alphabet has acknowledged these changes in its latest financial report, indicating that adapting to these shifts poses challenges and uncertainties for its advertising strategies [5].