Alphabet raises $85 billion for AI as inflation pushes investors into tech — ride the momentum on GOOGL
Google's parent company, Alphabet, just announced a massive $84.75 billion fundraising effort specifically to build out artificial intelligence. Meanwhile, a new government report shows inflation is heating up, which is driving investors away from everyday consumer stocks and into technology.
Idea
Alphabet is going to the market to raise an incredible $84.75 billion, explicitly stating the funds will be used to dominate the AI race. When tech giants spend this aggressively on new technology, the companies building the actual tools—like Microsoft and Nvidia—usually see their own stock prices rise as they secure massive new contracts. Additionally, today's Federal Reserve report showed inflation is creeping higher. Historically, when inflation rises, investors pull money out of regular consumer companies and dump it into tech giants like Alphabet, which have the pricing power to weather the storm.