Alphabet’s Debt Soars to $70B After $20B Bond Sale, Capex Plan Drives 327% Jump
Alphabet’s long-term debt jumped from $11B at end-2024 to roughly $70B after a $20B bond sale plus a 100-year bond issuance on Feb. 9. A planned $175-185B AI infrastructure capex for 2026 drove debt up 327% to $46.5B by late 2025, marking a departure from its capital-light past.
1. Debt Growth Dynamics
At the end of 2024, Alphabet held $11 billion in long-term debt. By late 2025, borrowing had surged 327% to $46.5 billion, and on Feb. 9 the company added a $20 billion bond issue—lifting total long-term obligations to roughly $70 billion.
2. Century Bond Impact
Alphabet’s issuance of a 100-year sterling bond marks the first such move by a major tech firm since 1997. The century-long debt ties pension funds and insurers to Alphabet’s outcomes, potentially aligning global institutions with the company’s defense against antitrust actions.
3. AI Infrastructure Spending
To support AI development and data-center expansion, Alphabet plans $175-185 billion in capital expenditures for 2026—nearly double its 2025 capex. This massive investment underpins a shift away from its historically capital-light model toward industrial-scale infrastructure.
4. Investor Risk Considerations
Rising debt levels increase interest-coverage and credit-rating risks while diverting cash flow from core operations. Investors must weigh these obligations alongside Alphabet’s own warning that AI-powered search could threaten its 90%-margin ad business.