BMO Capital Markets has reiterated its Outperform rating on Alphabet, pointing to the company's strengthening leadership position in artificial intelligence. Separately, Alphabet has committed up to $40 billion in investment into Anthropic — the AI lab behind Claude and a leading rival to OpenAI — alongside a deal to supply Anthropic with 5 gigawatts of computing power. Together, these moves signal Alphabet is aggressively consolidating its position across the entire AI stack.
A $40 billion commitment to Anthropic is one of the largest single AI investments on record, and it does two things at once: it gives Alphabet a financial stake in a top-tier AI competitor while locking Anthropic into Google's cloud infrastructure for compute. For investors holding Alphabet, this deepens the AI moat that BMO is already rewarding with an Outperform rating. Broader AI infrastructure plays — cloud providers, data center REITs, and power utilities — could also see indirect tailwinds from the 5-gigawatt compute commitment.
Alphabet Q2 2025 earnings call (expected late July): watch for commentary on Anthropic revenue contribution and Google Cloud growth. FTC / DOJ AI antitrust developments: ongoing scrutiny of large tech AI investments could surface at any time. Any Anthropic product launch or valuation update would directly affect the perceived value of the $40B stake.
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