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Alphabet’s massive share sale, and Anthropic’s IPO, are also reminders that an AI crash would have serious consequences for investors, both large and small.
Ipek Ozkardeskaya, senior analyst at Swissquote, explains:
The AI race is no longer being funded solely by venture capitalists willing to lose money for a decade in exchange for a shot at changing the world. The financing is becoming increasingly institutionalized. Just yesterday, Alphabet announced plans to raise $80 billion to fund its AI ambitions – one of the biggest stock deals in history – including a $10 billion investment from Berkshire Hathaway.
This means that AI is increasingly becoming a financing story as well. And the deeper traditional finance gets involved, the more the AI story shifts from a technology narrative toward a financing and credit narrative.
AI is driving an expansionary moment for Alphabet. The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.
“Funding of the AI capex boom is becoming an increasingly key topic for markets.”
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