Feb. 12 at 11:31 AM
$GOOGL Really? 100 year bonds to build out AI infrastructure.
$QQQ That is ludicrous. It kinda sends 2 messages 1) we can’t really afford to make any principal payments soon we’re cash strapped. One of the highest profile (and much more logical) examples of 100 year bonds came from the Government of Mexico.
Message 2) “We’re either going to take over the world within 100 years (and maybe we’ll just be printing our own money) or AI will just lead to the demise of humans.” I know that’s a little extreme. Not sure it’s meant literally. But the point is that issuing 100 year bonds is basically saying “by the time we get to maturity, none of this will matter at all. Either because something very good happens or because something very bad happens. Either way it’s free money.”
And it’s not just Google. All the hyper scalers are spending with this general attitude.
