Alphabet(US:GOOGL) Benzinga·2026-02-10 17:14Core Viewpoint - Alphabet Inc has transitioned from a tech company to an industrial giant, with its long-term debt increasing dramatically from $11 billion to approximately $70 billion in just over a year, indicating significant changes in the tech landscape [1]. Group 1: Debt Growth - At the end of 2024, Alphabet was characterized as a "capital-light" software company with minimal debt, but by late 2025, its debt surged to $46.5 billion, marking a 327% increase [2]. - The company further increased its debt by $20 billion through a bond sale in February 2026, bringing the total debt close to $70 billion, suggesting a shift towards financing akin to war rather than traditional liquidity management [2]. Group 2: Century Bond Significance - The issuance of a 100-year bond is notable as it has not been utilized by a major tech firm since Motorola in 1997, which subsequently lost its market position [3]. - This century bond acts as a financial "human shield," as pension funds and insurers now have a vested interest in protecting Alphabet from potential antitrust actions [3]. Group 3: Capital Expenditure for AI - Alphabet's borrowing is driven by the capital-intensive nature of AI, with plans to invest $175 billion to $185 billion in capital expenditures in 2026, nearly double the previous year's spending [4]. Group 4: Investor Concerns - In its February 4 10-K filing, Alphabet acknowledged that AI-powered search technologies could pose a threat to its core advertising business, which currently enjoys a 90% margin [5]. - This situation presents a paradox where Wall Street is financing a company that admits its primary revenue source may be disrupted by the very technology being funded by this debt [5].