As Charles Duffy mentioned in the comments, floating point math does not have infinite precision (see also the question Is floating point math broken?).
In 0.123 ** 123 ** 123
the intermediary result becomes equal to zero after just a few steps and subsequent multiplications don't need to be performed.
Naive demonstration of a temporary value becoming equal to zero:
>>> v = 0.123
>>> i = 0
>>> while True:
...: v = v*v
...: i += 1
...: if v == 0:
...: break
...:
>>> i
>>> 9
In the real world, nothing close to this happens. CPython calls the patform pow
here in line 912. The platform math functions tend to be optimized to the extreme and take any shortcut they can, with trickery and deception aquired over generations of numerical mathematics.