I Can’t Stop Buying Alphabet Because The AI Talent Narrative is Wrong
This financial analysis argues that the bearish narrative of Alphabet (Google) losing AI talent to rivals like Anthropic and OpenAI is incorrect. The author's conviction is based on two structural facts: the merger of Google Brain and DeepMind under Demis Hassabis creating a dense concentration of AI PhDs, and multi-billion-dollar retention packages offering access to proprietary TPU clusters. Financial evidence is cited, including Q1 2026 revenue of $109.90 billion (up 21.8% YoY), EPS of $5.11 beating the $2.63 estimate, and Google Cloud growing 63% to $20.03 billion with a backlog of $460 billion. The author prefers Alphabet over Microsoft, Amazon, and Meta due to its cloud growth, advertising revenue, and subscription base. The primary risk identified is massive capital expenditure ($175-185 billion in 2026), which has already caused free cash flow to drop 47% year-over-year.
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