Alphabet (GOOG · NASDAQ)
All In on AI
The only AI giant that can fund the entire arms race from its own pocket, and still owns the chips, models, and billions of users.
Bull case for Alphabet
It Can Fund the AI Arms Race From Its Own Pocket
Cash flow covers $190bn capex while rivals must keep raising to survive.
Cloud Has Become a Real Growth Engine
Cloud past $20bn a quarter, backlog near $460bn, outgrowing rivals.
Search Is Holding, and AI Is Quietly Helping:
Ad revenue still growing; AI sharpens targeting rather than cannibalising clicks.
Bear case for Alphabet
The Spending Bill Is Enormous
$190bn capex plus an $85bn raise invites scrutiny on returns.
Regulation Could Reshape the Business:
Antitrust and EU rules threaten a business ~73% reliant on ads.
Rivals and Self-Cannibalisation Loom
AI search rivals, and Google's own answer-engine pivot, could erode ad economics.