Alphabet’s £1 billion century bond, issued in February, has fallen below 90 pence for the first time, leaving investors down about 10% on principal. According to Techub, the move reflects duration risk in a higher-rate environment rather than any deterioration in Alphabet’s credit profile. The bond was reportedly 10 times oversubscribed at issuance, with proceeds earmarked for AI infrastructure. Techub also said Alphabet expects capital expenditures to reach $175 billion to $185 billion in 2026, a scale that exceeds the total market capitalization of most crypto projects and highlights how aggressively major traditional technology companies are spending on AI.
Alphabet’s £1 billion century bond issued in February has dropped below 90 pence for the first time, leaving investors with an estimated principal loss of about 10%, according to Techub.
Techub said the decline reflects duration risk as interest rates rise, not a worsening in Alphabet’s credit quality.
The bond was 10 times oversubscribed when it was sold, and the proceeds were designated for AI infrastructure. Alphabet is expected to spend between $175 billion and $185 billion in capital expenditures in 2026, Techub said. That figure is far larger than the total market capitalization of most cryptocurrency projects and points to the scale of capital being directed into AI by large traditional technology companies.
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