Alphabet Sold Its Entire Stake in This Skyrocketing Artificial Intelligence (AI) Stock and Bought This $32 Billion Startup Instead
(NASDAQ: GOOG) (NASDAQ: GOOGL) is one of the biggest spenders on artificial intelligence (AI) in the world. During its second-quarter earnings call, CFO Anat Ashkenazi said that it would spend $85 billion this year on capital expenditures, up from her prior outlook of $75 billion. Two-thirds of that would go toward servers for training and running large language models.
But Alphabet is also heavily invested in AI in other areas, including its CapitalG independent growth fund. The fund has $7 billion in assets under management, and it's been an early investor in several major companies (16 of which have made IPOs).
As of the end of Q2, the fund held 36 publicly traded stocks, according to its 13F filing with the SEC. That's down from 40 stocks held after the first quarter after fully divesting several holdings. One of those divested holdings is a major AI stock that CapitalG first invested in during its Series C in 2015. Instead, its parent company Alphabet has agreed to acquire a five-year-old start-up in the same space for $32 billion.
Source Fool.com
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