Alphabet bets 100 years on AI 🤯

Welcome back to the the Day Trading newsletter 📈 

Markets closed flat yesterday after a stronger-than-expected jobs report initially sparked a rally before investors remembered what that means for rate cuts.

All eyes now turn to Friday's CPI print.

Let’s get into it 👇️ 

💼 January jobs surged 130,000, well above expectations, and the unemployment rate ticked down. Good news for the economy, but traders immediately trimmed Fed rate cut bets. Morgan Stanley's Ellen Zentner called it "vindication for Chair Powell's holding pattern." Friday's CPI just got a lot more important (NYT)

🛑 Crypto lender BlockFills suspended deposits and withdrawals amid bitcoin's slide. Another domino in crypto's post-boom hangover, with BTC hovering at $66K after falling from $70K (Reuters)

↔️ Kraft Heinz shocked investors by shelving plans to split into two companies. New CEO Steve Cahillane says the company's "challenges are fixable and within our control." Translation: the spin-off wasn't going to fix what's broken. Shares slipped despite an earnings beat, and Berkshire is unwinding its 28% stake (Investopedia)

🛢️ Oil slipped after IEA cut demand forecast. Brent crude is heading toward $58/barrel. OPEC+ deciding on output hikes as Q2 demand drops 400K bpd. US-Iran tensions the only bullish factor (Reuters)

Alphabet is doing something no tech company has attempted since the dot-com era: they’re selling a 100-year bond.

The Google parent raised a staggering $31.5 billion this week across global debt markets, including a £1 billion century bond (the first from a tech company since Motorola in 1997).

Demand was nearly ten times the amount sought, with life insurers, pension funds, and endowments hungry for long-dated corporate paper.

The century bond pays a 6.125% coupon and represents a philosophical shift for Big Tech. These companies built empires on asset-light software models. Now they're borrowing like utilities and railroads (companies that build physical infrastructure meant to last generations).

The timing isn't coincidental. Alphabet announced record AI capex of $185 billion for 2026, roughly double last year's spend.

Combined with Microsoft, Amazon, and Meta, the hyperscalers are pouring over $630 billion into data centers and AI chips this year.

The bond comes with almost no investor protections, unusual for even blue-chip issuers. That signals how desperately yield-hungry institutions want exposure to Big Tech debt, even on lopsided terms.

Whether AI infrastructure delivers returns on a 100-year timeline is anyone's guess. But Alphabet is betting the debt markets will trust them long after most of us are gone.

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.