In Google We Trust: Why an internet company can borrow billions for a century

"This morning, I woke up to a stunning report that Google is gearing up to sell a 100-year bond. That follows a similar move in early November, when Google issued a 50-year bond. Investors are giving this company billions and are willing to wait up to a century to get it back. In contrast, the US government usually borrows money for a maximum of 30 years. And the interest rates Google is paying are not that much more than what the US Treasury pays. For the 50-year bond, Google paid about 1 percentage point more, but got an extra 20 years to repay. To me, this means Google is now considered about as safe a bet as an entity that oversees the world's largest economy, operates the most powerful military on earth, and can print US dollars to pay back what it owes. How is this possible?"

"In September, something happened that changed what Google really is. After previously ruling Google was a monopoly, a federal judge delivered remedies that left the company mostly unscathed. In the words of former DOJ antitrust attorney John Newman, "a judge just decided to let Google keep breaking the law." Google essentially became a government-approved monopoly. Other companies in similar situations, such as utilities, have their prices controlled by regulators. In contrast, Google gets to charge whatever it can get away with for online search ads."

"The result is a profit gusher the likes of which the world has never seen. Net income topped $132 billion in 2025, Google reported last week. For 2026, the company plans to spend as much as $185 billion on data centers, chips, and other components to support its AI efforts."

Google is preparing to sell 100-year bonds after recently issuing 50-year paper, with investors lending billions and accepting repayment timelines up to a century. The company paid interest only modestly above US Treasury rates—about one percentage point more for the 50-year bond—while gaining two extra decades to repay. A federal judge's remedies left Google largely intact despite a prior monopoly finding, effectively preserving its market dominance and pricing power in search advertising. That dominance generated extraordinary profits—net income exceeded $132 billion in 2025—and supports plans for up to $185 billion in AI-related capital spending in 2026.

Read at Business Insider