Michael Burry Warns Alphabet’s 100-Year Bond Move Echoes Motorola’s Fall

Michael Burry, best known for predicting the 2008 financial crisis, has sparked debate after drawing parallels between Alphabet’s reported bond issuance strategy and Motorola’s decline in the late 1990s. Alphabet Inc., the parent company of Google, has reportedly moved to raise capital through bond sales across multiple currencies, including US dollars, British pounds, and Swiss francs. Among the offerings is a bond with a maturity stretching decades into the future.

Burry reacted by referencing Motorola’s historic decision in 1997 to issue a 100-year bond—an act widely seen at the time as a sign of confidence in its long-term dominance.

The Motorola Parallel

In the late 1990s, Motorola was one of America’s most powerful corporations, ranking among the top companies by market capitalization and revenue. Its brand strength rivaled industry leaders of the era. However, within a few years, the company began losing ground to competitors such as Nokia, and later struggled in the wake of Apple’s iPhone revolution.

Today, Motorola operates on a much smaller scale compared to its peak.

Michael Burry’s comparison is not necessarily a prediction of immediate trouble for Alphabet. Instead, it serves as a cautionary note about the risks of extremely long-term debt. His broader message: even dominant tech companies are not immune to disruption.

AI Spending and Big Tech Risks

Alphabet’s fundraising efforts come at a time when major technology firms are investing heavily in artificial intelligence infrastructure. Companies such as Alphabet, Amazon, and Meta are committing billions toward data centers, advanced computing systems, and AI chip development.

Michael Burry has previously criticized what he sees as excessive enthusiasm around AI, particularly the scale and pace of capital expenditure. He has questioned whether some AI infrastructure investments could become outdated more quickly than expected.

The investor has also expressed skepticism regarding the longevity of the AI chip boom, suggesting that market expectations may be overly optimistic.

The Energy Challenge Behind AI Growth

Beyond financial strategy, Burry has highlighted a structural concern: electricity supply. Expanding AI capabilities requires immense computing power, which in turn demands significant energy resources.

He has argued that the United States should make substantial investments in next-generation energy solutions, including small nuclear reactors, to support future data center expansion and maintain its global technology leadership. Without sufficient energy infrastructure, he believes innovation could slow despite current investment enthusiasm.

A Broader Warning for Investors

Michael Burry’s comments reflect a broader principle in financial markets: industry dominance is rarely permanent. History has shown that technological leadership can shift rapidly due to innovation, competition, or unforeseen market changes.

While Alphabet remains one of the world’s most influential technology companies, Burry’s comparison underscores the importance of long-term strategic caution. Issuing ultra-long-duration debt may signal confidence—but it also assumes continued relevance far into the future.

For investors watching the AI boom and Big Tech bond markets, the debate highlights the need to balance optimism with historical perspective.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct independent research and consult qualified financial advisors before making investment decisions.