Bill Ackman's Hedge Fund Bets Big on AI Stock with 6,930% Surge

Billionaire Bill Ackman's hedge fund, Pershing Square Capital Management, has a 14% stake in Alphabet (GOOGL), which has risen 6,930% since its IPO in 2004. Ackman highlights Alphabet's distribution advantage, unrivaled data for AI training, and long history in AI development. Alphabet's leading Gemini models, 1.5 billion monthly users for its AI Overviews feature, and strong demand for its AI tools on the Google Cloud Platform position it as a leader in AI.

Title: Billionaire Bill Ackman's Stake in Alphabet: A Deep Dive into Pershing Square's Investment

Billionaire Bill Ackman's hedge fund, Pershing Square Capital Management, holds a significant 14% stake in Alphabet Inc. (GOOGL), the parent company of Google. This investment is part of a broader strategy that Ackman has employed to capitalize on Alphabet's strengths in AI and cloud computing. Alphabet, which has seen a remarkable 6,930% increase in its stock price since its IPO in 2004, is a key player in the AI landscape due to its extensive data resources and long history of innovation in the field.

Ackman's interest in Alphabet is driven by several factors. The company's distribution advantage, unrivaled data for AI training, and long history in AI development make it an attractive investment. Alphabet's leading Gemini models, which have 1.5 billion monthly users for its AI Overviews feature, and the strong demand for its AI tools on the Google Cloud Platform (GCP) position it as a leader in AI. These factors contribute to Alphabet's ability to generate revenue through various channels, including digital advertising and cloud computing services.

Ackman has highlighted Alphabet's potential for accelerated revenue growth and profit margin expansion, particularly in the areas of digital advertising and cloud computing. The integration of AI-powered features, such as AI-crafted summaries in Google Search, has shown encouraging metrics, indicating higher user engagement trends. Additionally, Alphabet's investments in cybersecurity tools and AI-powered services on the GCP differentiate it from competitors like Microsoft Azure and Amazon Web Services (AWS).

Despite the positive outlook, there are concerns about the potential impact of generative AI on Google Search. Billionaire Philippe Laffont, founder of Coatue Management, has expressed concern over the outlook for Google Search in the face of competition from generative AI. However, Ackman's thesis on Alphabet's growth potential remains strong, particularly given the strategic partnership between Alphabet and OpenAI, which leverages Google Cloud's network. This partnership could provide a lucrative opportunity for Alphabet while potentially offsetting any threats to its search business.

In conclusion, Pershing Square's investment in Alphabet reflects a long-term view of the company's potential to capitalize on the AI revolution. With a discounted valuation and a wide disparity in valuation multiples relative to its peers, Alphabet stock presents an opportunity for investors seeking exposure to the AI sector.

References:
1. [Financial Express](https://www.financialexpress.com/life/technology-how-to-generate-ai-videos-from-photos-using-google-gemini-5-easy-steps-on-pc-android-and-iphone-3912390/)
2. [The Motley Fool](https://www.fool.com/investing/2025/07/10/ackman-has-14-in-this-dirt-cheap-stock-laffont/)
3. [Benzinga](https://www.benzinga.com/markets/tech/25/07/46384871/tucker-carlson-asks-how-did-well-connected-and-super-aggressive-bill-ackman-get-his-9-billion-pershing-square-founder-fires-back-at-epstein-smear-owes-me-an-apology)