Michael Burry Compares Alphabet's 100-Year Bonds to Motorola's Downfall After Similar Move in 1997

Michael Burry, who predicted the 2008 global financial crisis, has repeatedly issued warnings about the global economy, the bitcoin crash and a potential massive AI bubble. He has also been placing bets against major AI players such as Nvidia and Palantir Technologies amid overstretched valuations and limited revenues from extensive AI investments.

In a recent post on X, he compared Alphabet's decision to issue 100-year bonds with a similar move by Motorola in 1997, the last time the company was considered a major player. In the years following Motorola's bond sale, the company's prominence declined.

Google's parent company reportedly initiated a bond offering that could include seven maturities, with the longest extending decades into the future, including one in 2066. Alphabet plans to issue debt in dollars, British pounds and Swiss francs with varying maturities.

'Alphabet looking to issue a 100-year bond. Last time this happened was Motorola in 1997, which was the last year Motorola was considered a big deal,' Burry wrote on the social media platform.

Motorola's Downfall After Century Bond Issues

Burry recalled that Motorola's century bond was issued when the company ranked among the top 25 US corporations by market capitalisation and revenue, even leading brand rankings ahead of Microsoft. However, its standing eroded in the following years, with competitors such as Nokia overtaking it in major segments like mobile phones. Motorola's prominence declined further when Apple launched the iPhone.

'Now, what was once a dominant name is much smaller, with its market value and sales reduced from their peak. Today, Motorola is the 232nd-largest company by market capitalisation, with only $11 billion in sales,' Burry stated.

On social media, users are questioning the staying power of any tech company over a century. 'Lending money to a tech company for 100 years is a bet that AI won't disrupt Google the way Google disrupted the phone book,' one Reddit user said.

However, several analysts view Alphabet's bond as a masterstroke, tapping into the 'structural appetite' of UK pension funds and insurers, which require ultra-long-duration assets to match their decades-long liabilities.

The Only Way US Can Beat China in the AI Race

Burry stated earlier that the US's best strategy to stay ahead of China in the AI race is to facilitate a federal investment of around $1 trillion for the development and deployment of small nuclear reactors to meet the growing electricity demand from AI data centres and high-tech manufacturing. He stressed that the rapid, widespread deployment of small nuclear reactors across the US could be a game-changer for maintaining long-term economic and technological growth.

However, he warned that bureaucratic delays and regulatory hurdles could hinder progress. He called on President Donald Trump, Vice President JD Vance and other key policymakers to prioritise the initiative and expedite the necessary approvals, cautioning that an energy shortfall could soon become a significant obstacle to American innovation and economic expansion.

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