Alphabet (GOOGL) Flags $514 Billion Cloud Backlog As Revenue Mix Starts To Shift

Alphabet (GOOGL) is challenging EU orders under the Digital Markets Act. The orders require Google to share Android features with rival AI assistants and provide search data to competitors. Google argues this could weaken privacy and security, while the EU claims safeguards are in place. The outcome may impact Google's competitive advantages in AI and search. Changes are set for 2025, but the legal challenge adds uncertainty.

Anthropic plans to spend $518 billion over a decade on AI infrastructure with partners, including $111.1 billion with Google, $110 billion with Amazon, and $31.4 billion with Microsoft, according to an IPO filing. About 80% of these commitments are non-cancellable. The company also has $161.2 billion in non-cancellable Broadcom equipment leases. Anthropic warns that dependence on these partners poses risks.

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Berkshire Hathaway increased its stake in Alphabet (GOOGL, GOOG) to 10% of its portfolio, making it the third-largest holding. Warren Buffett and Greg Abel see value in Alphabet's AI dominance and valuation. Berkshire's investment approach differs from its Apple (AAPL) investment, including a direct $10 billion private placement. Abel's focus on AI's impact on Berkshire's businesses influenced the decision.

Alphabet's Google has appealed EU orders under the Digital Markets Act, requiring it to share search data and AI services with rivals like OpenAI. Google argues the measures compromise user privacy and security, while the EU claims safeguards are in place. The appeals were filed with the General Court in Luxembourg and are set to take effect next year.

Berkshire Hathaway increased its stake in Alphabet (GOOGL) to 10% of its portfolio, reflecting confidence in AI-driven growth. Alphabet's market cap is $4.2T, with a P/E ratio of 22.8. Analysts predict a stock price rise to $400. Buffett and Abel support Alphabet's data center investments.