To: Johnny Canuck who wrote (70628 ) 2/9/2026 12:10:38 PM From: Johnny Canuck Read Replies (1) | Respond to Conversation with Geminim.youtube.com Dr. Josh C. Simmons discusses Google’s recent $15 billion bond sale as evidence that the company is struggling to self-fund its massive AI ambitions. He frames this as part of a dangerous, industry-wide "spending binge" that mirrors the risks seen during the dot-com bubble.Key Takeaways The $15 Billion Bond Sale: Google recently announced a $15 billion high-grade bond sale to fund AI data centers [ 01:13 ]. Notably, some of these bonds have a 40-year maturity (maturing in 2066), which the creator argues is a massive bet on infrastructure that may not provide long-term returns [ 00:58 ].Exploding Capital Expenditures (CAPEX): Google's projected CAPEX for this year is between $175 billion and $185 billion [ 02:26 ].This is double what they spent in 2025 ($90 billion) and triple their 2024 spending ($52 billion) [ 02:35 ]. To put this in perspective, there are only 59 other companies in the S&P 500 that Google couldn't buy outright with that $180 billion budget [ 03:15 ]. The "Tech Debt" Pattern: This isn't just a Google issue. Hyperscalers (Google, Meta, Oracle, etc.) issued $121 billion in bonds last year, a 4x increase over the 2020-2024 average [ 04:13 ]. Analysts project up to $1.5 trillion in new tech debt over the next few years [ 04:57 ].The Dot-Com Parallel: The creator compares the current AI infrastructure build-out to the fiber optic boom of the late 90s. During that time, telecom companies spent $500 billion on cables that eventually sat "dark" after the companies went bankrupt, only to be bought for pennies on the dollar later [ 06:17 ]."Vibe Investing" vs. Business Logic: The core critique is that these companies are spending far more than they earn on AI, with assets that depreciate at roughly 20% per year [ 05:14 ]. He argues the current scaling is based on "vibes" and the fear of falling behind rather than proven returns on investment [ 07:35 ].Conclusion: While AI technology itself may be valuable, the creator warns that the financial decisions and the speed of scaling are currently reckless and lack a clear path to profitability [ 08:28 ].Watch the full video here Gemini is AI and can make mistakes.
