Pershing Square Capital Management, L.P. on Alphabet
Thesis
Alphabet is successfully leveraging its core strengths to execute on its vast AI potential, which is having a transformative impact on Search and YouTube. AI Overviews in Search is now the world’s most widely used AI product, and a partnership with Apple to power Siri validates its AI leadership. Its unique full-stack approach has also differentiated Google Cloud, which has grown into a $70 billion run-rate revenue business.
“Alphabet is leveraging its core strengths in data, distribution, infrastructure, and research expertise to successfully execute on its vast AI potential... AI is having a transformative impact on Search & YouTube... Unique full-stack approach to AI has increasingly differentiated Google Cloud... Cost-advantaged technical infrastructure and world-class models have propelled Google Cloud into a $70 billion run-rate revenue business”