In a striking social media commentary, Zoho Corporation co-founder Sridhar Vembu has intensified his critique of major technology firms' expanding influence, framing their current financial maneuvers as reminiscent of historical colonial enterprises. The remarks emerged against the backdrop of Alphabet Inc.'s substantial debt offering this week, which has drawn significant market attention for its scale and unconventional structure.
Alphabet's Landmark Debt Raise
Alphabet, the parent entity of Google, successfully accessed global capital markets to secure $31.51 billion through a multi-currency bond issuance. The offering included tranches denominated in U.S. dollars, British sterling, and Swiss francs. Notably, the package featured a 100-year "century" bond in sterling—an instrument typically associated with sovereign governments rather than corporate borrowers. According to financial reports, this marks the technology sector's first century bond since Motorola issued one in 1997.
Jason Granet, Chief Investment Officer at BNY, characterized the ultra-long debt as "representative" of the immense capital expenditure requirements currently facing the industry. The bond sale was executed with remarkable speed, reportedly completed in approximately one day, a pace that starkly contrasts with the often protracted timelines of sovereign debt issuances, particularly in markets like India.
The Sovereignty Argument
Vembu's commentary, posted on February 14, did not explicitly name specific corporations but was a direct response to discussions about Alphabet's rapid $32 billion fundraising. He invoked the historical analogy of the British East India Company, which began as a trading entity but evolved into a governing force across parts of Asia. Vembu suggested that modern technology giants, through their control over critical digital infrastructure—data, essential software platforms, and business networks—are accumulating comparable leverage.
The Zoho founder has been a vocal proponent of "technology sovereignty," arguing that nations must maintain control over foundational digital assets like cloud services and communication platforms. He has previously asserted that "the very definition of a sovereign nation should now include technology sovereignty," warning that over-reliance on foreign platforms poses enduring economic and national security risks.
Market Context and Investor Scrutiny
The bond sale underscores the aggressive capital investment cycle major tech firms are undertaking to build out artificial intelligence infrastructure, including data centers, semiconductor capacity, and advanced networks. This spending spree is occurring at a velocity that frequently surpasses public sector investment capabilities.
While investor demand for debt from leading cloud and AI companies remains robust, some analysts noted nuances in the latest offering. Julia Khandoshko, CEO of broker Mind Money, highlighted a reduction in certain protective covenants for bondholders in this issuance compared to previous ones.
Practical Challenges and Global Movements
Vembu's warnings align with a growing, albeit complex, international push for technological self-reliance. He cited France's decision to replace Zoom and Microsoft Teams with a domestically developed alternative, Visio, as a practical example. However, the path to sovereignty is fraught with difficulties. Transitioning away from entrenched foreign platforms often involves multi-year timelines, cost overruns, and significant operational disruption, especially for governments and enterprises deeply integrated with U.S. cloud and software ecosystems.
Zoho, as a privately-held enterprise software company competing directly with global giants in business applications and cloud services, operates at the heart of this tension. Vembu's perspective highlights the central dilemma: dominant platforms offer unparalleled convenience and integration, while boardrooms and government offices increasingly grapple with the strategic imperative to retain domestic control.
The Broader Implications
The debate extends beyond financial markets into geopolitics and industrial policy. As AI becomes a central battleground for economic and military advantage, the ability of technology firms to mobilize capital on a scale rivaling nations—exemplified by Alphabet's bond sale—amplifies concerns about power concentration. The episode raises fundamental questions about the balance between innovation-driven growth and the preservation of national strategic autonomy in the digital age.
