News: Billionaire Bill Ackman's hedge fund unveils a new Alphabet stake worth over $1 billion in a nod to the company's AI push

Billionaire investor Bill Ackman's hedge fund, Pershing Square Capital Management, has recently disclosed its purchase of Alphabet shares valued at more than $1 billion. This move aligns with Alphabet's increased focus on artificial intelligence (AI) technologies.

In the first-quarter portfolio update released on Monday, Pershing Square revealed its acquisition of over 10 million shares in Alphabet's parent company, Google. This purchase consisted of approximately 2.2 million Class A shares and 8.1 million Class C shares.

Alphabet's strategic investment comes at a time when the company is actively participating in the AI boom of 2023, which was initiated by the launch of OpenAI's ChatGPT. The recent AI-related announcements made by Alphabet at its developer conference have significantly contributed to a $131 billion surge in the company's market value. Notably, Alphabet's Class A shares have experienced a 30% increase in value since the beginning of this year.

During the conference, Alphabet CEO Sundar Pichai emphasized the significance of generative AI and its impact on core products such as search. He expressed the company's commitment to reimagine these products responsibly.

As part of their AI initiatives, Alphabet introduced "AI Snapshot" for Google Search and unveiled a new large language tool named PaLM 2.

Bill Ackman has been actively promoting the growing importance of artificial intelligence and cautioning against any disruption in its development, citing potential risks to national security. This stance follows Elon Musk and other prominent figures calling for a six-month pause in AI advancement.

In addition to the Alphabet investment, Pershing Square Capital Management decreased its holdings in consumer-facing brands like Chipotle, Hilton, and Lowes. However, the fund maintained its position with 24.2 million shares in Restaurant Brands International, leaving it unchanged.

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