Alphabet’s $190 Billion AI Bet: A Record Yen Bond, a Cloud Backlog Boom, and Billionaire Investors at Odds

Alphabet has pulled off the largest yen-denominated bond ever issued by a non-Japanese company, raising roughly $3.6 billion in a seven-tranche deal that underscores the scale of its artificial-intelligence ambitions. The 576.5 billion yen offering, placed on May 16, eclipses the previous record set by Berkshire Hathaway in 2019 and marks the latest fundraising push in a four-month capital blitz that has netted the Google parent around $60 billion. Alphabet plans to spend up to $190 billion this year alone — nearly double last year’s outlay — with the bulk directed toward data centers and custom Tensor Processing Unit chips.

The bond proceeds arrive as the company’s cloud business puts up numbers that help justify the spending spree. Google Cloud generated $20 billion in quarterly revenue, up 63% from a year earlier, while its operating margin more than doubled to 33%. The division’s backlog has nearly doubled to roughly $461 billion, bolstered by a $200 billion partnership with AI lab Anthropic. That backlog, along with first-quarter earnings per share of $5.11 on revenue of $110 billion — both beating analyst estimates — provides a tangible foundation for the massive capital deployment.

Yet two of the world’s most closely watched investors have drawn sharply different conclusions from the same set of facts. Berkshire Hathaway, now under the investment stewardship of Greg Abel, more than tripled its Alphabet stake in the first quarter to roughly 58 million shares, a holding worth about $23 billion. Bill Ackman’s Pershing Square took the opposite path, selling 95% of its Alphabet position — reducing Class A shares from 678,000 to about 32,000. Ackman insisted on social media that the move was not a vote of no confidence but a tactical reallocation: the proceeds funded a new $2.4 billion bet on Microsoft. He described himself as “very bullish” on Alphabet’s long-term prospects but saw more near-term upside in the trade.

Should investors sell immediately? Or is it worth buying Alphabet?

Beyond the balance sheet and investor theater, Alphabet is also pursuing a more futuristic avenue for its AI infrastructure: orbital data centers. The company is reportedly deepening its collaboration with SpaceX to move computing power into low Earth orbit, aiming to slash energy costs and reduce the environmental footprint of terrestrial server farms. Alphabet holds an estimated 6% stake in SpaceX, valued by analysts at roughly $100 billion. If space-based data processing becomes viable, it could hand the company a structural cost advantage in the AI arms race.

Shares of Alphabet closed Friday at €341.45, down 0.91%, but remain within striking distance of their 52-week high of €344.60. The stock has gained about 27% since the start of the year and has more than doubled over the past twelve months. The next major catalyst arrives on May 19, when Google hosts its I/O developer conference. Bank of America analysts anticipate updates on the next generation of the Gemini AI ecosystem and new “agentic” AI capabilities.

Wall Street is largely optimistic: 26 of the 33 analysts covering Alphabet rate it a buy, with price targets ranging from $363 to $460. But the bar is high. Any disappointment at Google I/O could expose the stock to short-term headwinds, especially after a rally that already reflects lofty expectations.

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