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Alphabet Issues Rare 100-Year Bonds to Finance AI Investments

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Unlocking Insights on AI Infrastructure Investing

As AI technology surges, so do the funding needs of Big Tech. This year, companies are anticipated to invest nearly $700 billion in AI infrastructure. Here’s what you need to know:

  • Tony Trzcinka, Senior Portfolio Manager at Impax Asset Management, opted out of a recent bond offering citing insufficient yields and risks tied to AI investments.
  • Alphabet made headlines last year, raising €6.5 billion in European markets and $17.5 billion in U.S. bonds, including a historic 50-year bond.
  • Oracle also capitalized on the trend, raking in $25 billion from a bond sale, with over $125 billion in orders.
  • Investor interest peaked in shorter-term bonds, highlighting a shift in financial strategies within the tech sector.

With Alphabet’s massive spending plans, fueled by record sales exceeding $400 billion, the question remains: Can they sustain this growth through cash flows?

🔗 Explore the shifting landscape of AI investments and be part of the conversation. Share your thoughts!

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