Google — Gemini 3.5, $85B Equity Raise, Berkshire $10B, SpaceX GPU Lease, Intel TPU Deal
Key Questions
What new features does Gemini 3.5 offer?
Gemini 3.5 was unveiled at Google I/O with 4x faster processing speeds. It strengthens Alphabet's vertical integration from silicon to models, viewed as a key competitive moat.
How is Alphabet funding its AI infrastructure expansion?
Alphabet upsized its equity raise to $85B, including $10B from Berkshire Hathaway. It is also leasing 110K GPUs from SpaceX for $920M per month and securing 3M+ TPUs from Intel by 2028.
Why did Alphabet join the Dow Jones Industrial Average?
Alphabet's inclusion reinforces its position as AI infrastructure royalty. This reflects its distribution moat via Search, Cloud, and Workspace despite recent AI talent departures.
Google I/O unveils Gemini 3.5 with 4x faster processing. Alphabet upsized equity raise to $85B with $10B from Berkshire. Leasing 110K GPUs from SpaceX at $920M/month. Taps Intel for 3M+ TPUs by 2028. Ken Fisher favors GOOGL over MSFT on valuation. Druckenmiller sold all his GOOGL position. Vertical integration from silicon to models seen as powerful moat. Alphabet joins the Dow, reinforcing AI infrastructure royalty. Jefferies defends GOOGL after AI talent departures, citing distribution moat via Search, Cloud, and Workspace. Recent: AI architect departures continue, a near-term negative but doesn't change long-term distribution moat thesis. A new DCF analysis suggests GOOG is 60% overvalued ($147 intrinsic vs $367 market), a cautionary signal for bulls.