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Alphabet Sold Its Entire Stake in This Skyrocketing Artificial Intelligence (AI) Stock and Bought This $32 Billion Startup Instead

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  • Alphabet’s investment fund managed over $7 billion in assets, with a small portion held in publicly traded stocks.

  • After initially investing in this company’s series C in 2015, Alphabet has fully cut its stake in the business.

  • It plans to spend $32 billion to acquire one of its biggest rivals and bolster the fastest-growing segment of Google.

  • 10 stocks we like better than Alphabet ›

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is one of the biggest spenders on artificial intelligence (AI) in the world. During its second-quarter earnings call, CFO Anat Ashkenazi said that it would spend $85 billion this year on capital expenditures, up from her prior outlook of $75 billion. Two-thirds of that would go toward servers for training and running large language models.

But Alphabet is also heavily invested in AI in other areas, including its CapitalG independent growth fund. The fund has $7 billion in assets under management, and it’s been an early investor in several major companies (16 of which have made IPOs).

As of the end of Q2, the fund held 36 publicly traded stocks, according to its 13F filing with the SEC. That’s down from 40 stocks held after the first quarter after fully divesting several holdings. One of those divested holdings is a major AI stock that CapitalG first invested in during its Series C in 2015. Instead, its parent company Alphabet has agreed to acquire a five-year-old start-up in the same space for $32 billion.

Image source: Getty Images.

Over the last two quarters, CapitalG has sold off its remaining shares of CrowdStrike. At the end of 2023, the fund held 1.3 million shares of the stock, and it accounted for 15% of the fund’s marketable equity portfolio’s value.

But CapitalG started selling off the stock as it rose in value in 2024. That summer, however, CrowdStrike suffered a massive outage, which sent the shares tanking more than 40% from its high. Once shares recovered to their previous high, CapitalG resumed selling.

The biggest factor in the investment team’s decision to sell the stock appears to be valuation. That said, Alphabet’s decision to acquire competing cloud security company Wiz in March may have pushed the team to complete its divestment.

CrowdStrike is still recovering from the massive outage it experienced in July of last year. That’s weighed heavily on its operating margin. The company has stepped up sales and marketing spend while offering customers discounts for purchasing multiple modules across its security platform. Non-GAAP operating margin fell to 18% in its most recent quarter, down from 23% a year ago.

But as CrowdStrike puts last year’s outage in the rearview mirror, it’s well positioned to expand its margins once again and accelerate earnings growth. Revenue continues to climb rapidly, up 42% year over year. That’s bolstered by more customers taking multiple modules, with 48% using at least six of its products. That increases switching costs, and CrowdStrike’s robust portfolio of solutions plays into the trend of vendor consolidation. As companies migrate more workloads to the cloud, they’re looking for an all-in-one solution that can handle all their security needs, and CrowdStrike is well suited to meet that demand.

CrowdStrike is also investing in agentic AI capabilities with its new Charlotte platform. The software can take swift action to curb security threats upon detection. That’s built on top of CrowdStrike’s machine learning algorithms used to detect security threats in the first place.

But even with the strong top-line growth, CrowdStrike shares currently trade for around 27 times sales. That makes it one of the most expensive stocks, by far, in the cybersecurity space. And with Alphabet’s planned acquisition of Wiz, CrowdStrike’s position in cloud security may be about to get a bit weaker.

Google currently operates the third-largest public cloud platform, Google Cloud. While it’s growing quickly, it still trails its next-closest competitor, Microsoft‘s Azure, by a wide margin. Its Q2 run rate of $54.5 billion in cloud revenue is well behind Azure’s $75 billion in revenue for fiscal 2025. Given that Microsoft’s growing its sales faster than any company in the space, Google isn’t going to catch up anytime soon.

Embedding Wiz’s cloud security solutions into Google Cloud can add a new source of revenue for the company and increase its stickiness. That said, overdoing it and losing Wiz’s overall neutrality when it comes to cloud platforms could lead some customers to shift to competing services like CrowdStrike. So finding the right balance will be key for Alphabet.

Wiz can benefit from Alphabet’s ownership as well. It would gain access to more capital for investing in artificial intelligence, which is essential for identifying threats and closing vulnerabilities.

Over time, Google Cloud could win share of cloud contracts in industries where security is of premium importance, such as government contracts or banking. While the $32 billion price tag for Wiz is extremely expensive, the potential for Google to grow the business and strengthen its cloud platform makes it worth it, especially since it’s sitting on $95 billion of cash and marketable securities.

Shares of Alphabet look attractive at a forward price-to-earnings of less than 20. While it suffers from potential regulatory pressure, investors are getting a good value at the current price. If regulators approve the Wiz acquisition, it should bolster the fastest-growing segment of the business, making it an even better deal at this price.

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Adam Levy has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, CrowdStrike, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Alphabet Sold Its Entire Stake in This Skyrocketing Artificial Intelligence (AI) Stock and Bought This $32 Billion Startup Instead was originally published by The Motley Fool



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How the UAE Is using artificial intelligence to build the world’s largest Arabic language resources | World News

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The UAE is using AI to digitise 20 million Arabic words, 800,000 books, and develop native Arabic language models/Representative image

The United Arab Emirates is spearheading an ambitious national strategy to preserve and modernise the Arabic language using artificial intelligence. From comprehensive digital dictionaries to AI-powered readability tools and homegrown language models, the UAE’s cross-sectoral efforts aim to enhance Arabic’s global digital presence while protecting its cultural and linguistic heritage.

Building a digital future for Arabic: National-level projects

The UAE has launched several initiatives across publishing, education, and technology sectors to digitise and modernise the Arabic language. These efforts are backed by prominent institutions, with government support driving integration of AI across platforms and tools.

  • Historical dictionary of the Arabic language:
    Developed by the Arabic Language Academy in Sharjah, this project documents the evolution of Arabic through history. It consists of 127 volumes and includes over 20 million words. The dictionary is now available in a GPT-enabled interface, allowing users to explore its vast database interactively. Users can read, write, and even convert content into video, with regular updates and collaborative features enabled through a partnership with the Emirates Scholar Research Centre.
  • Digital Knowledge Hub:
    Run by the Mohammed bin Rashid Al Maktoum Knowledge Foundation, this initiative is a centralised platform for digital Arabic content. The Hub has collected 800,000+ titles and 8.5 million digital assets sourced from 18+ libraries. Its purpose is to consolidate Arabic knowledge in a structured digital format and expand global access to Arabic content.
  • AI-powered dictionary by Abu Dhabi Arabic Language Centre:
    A landmark tool in digital publishing, this is the first Arabic-English AI dictionary of its kind. It features
    • 7,000+ contemporary Arabic terms
    • AI-based automated pronunciation
    • Simplified, accessible definitions
    • Computational linguistics tools for precision and usability

These projects are setting a foundation for future Arabic language learning, content creation, and digital access at a global scale.

AI meets education and readability: Corpus and learning tools

The integration of AI into Arabic language education and research is another central pillar of the UAE’s strategy.

  • BAREC (Balanced Arabic Readability Corpus):

    Launched in 2023 by the Abu Dhabi Arabic Language Centre in partnership with New York University Abu Dhabi and Zayed University, this project aims to collect a 10 million-word linguistic corpus. It includes content from diverse genres and countries, focusing on text readability levels.

    Key objectives of BAREC include:

    • Annotating the corpus using spelling, grammar, and vocabulary complexity
    • Enabling AI tools to automatically assess and classify text readability
    • Supporting Arabic language learning and improving reading comprehension
    • Open-sourcing the data for the research community to enhance Arabic linguistic tools

Readability, as a concept, plays a crucial role in language acquisition, academic performance, and tailored content delivery—especially important in educational settings.

Falcon Arabic: UAE’s homegrown AI language model

The Technology Innovation Institute (TII), under the Advanced Technology Research Council (ATRC), is leading AI model development with a sharp focus on Arabic.

  • Falcon Arabic:

    Unlike many large language models that rely on translated datasets, Falcon Arabic is built on native Arabic-language data, including Modern Standard Arabic and regional dialects. Its unique value lies in capturing linguistic nuances, cultural context, and regional variation more effectively.

    Highlights of Falcon Arabic:

    • Competes with models up to 10x its size
    • Optimised for performance with reduced computational load
    • Developed entirely within the UAE, reinforcing data sovereignty and localisation
  • Falcon H1:

    A more compact version that reportedly outperforms Meta and Alibaba’s comparable models, Falcon H1 maintains high performance with lower technical requirements. Despite a strong start, Falcon models have faced user adoption and ranking challenges compared to global competitors like Meta and DeepSeek (China).

    TII’s broader mission includes AI, quantum computing, robotics, and more. Since its founding in May 2020, it has positioned Abu Dhabi as a regional R&D hub in next-gen tech.

Technology in publishing and international collaboration

The UAE’s publishing industry is being reimagined with AI at its core.

  • Digital square at Abu Dhabi international Book fair:
    This new initiative showcases how technology—particularly AI—is reshaping publishing. The space functions as an innovation zone, highlighting the digital transformation of literature, academic texts, and learning materials.
  • AI in classrooms:
    Educational institutions across the UAE are integrating AI tools in Arabic language instruction. The goal is to future-proof learning environments by combining traditional language preservation with modern digital competency.
  • International partnerships:
    A major milestone was an AI agreement signed during U.S. President Donald Trump’s visit, facilitating Emirati access to advanced American AI semiconductors. This deal has strategic implications, empowering UAE’s domestic AI development.





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StockGro launches AI stock research engine for retail investors

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By Vriti Gothi

Today

  • AI
  • Cross Border Payments
  • Digital Lending

Stockgro

StockGro, has launched of Stoxo, an AI-powered stock-market research engine designed exclusively for retail investors to bridge the gap between sophisticated market intelligence and everyday investors.

Stoxo harnesses advanced artificial intelligence to transform the way retail participants access, interpret, and act on market information. With its ability to analyse real-time trends, compare stocks across multiple parameters, and deliver actionable insights in an intuitive format, the platform offers retail investors a level of research capability once reserved for institutional players. Developed with an emphasis on accessibility and user-friendly design, Stoxo ensures that complex financial data is presented with clarity, empowering users to make confident, informed investment decisions.

The introduction of Stoxo positions StockGro at the forefront of India’s rapidly evolving investment ecosystem. The platform’s AI-driven architecture is built for scalability, enabling it to adapt seamlessly to shifting market conditions while maintaining the speed and precision required in modern trading environments. For customers, the impact is immediate greater transparency, enhanced decision-making power, and the ability to participate in the markets with a degree of insight previously out of reach for many retail investors.

Beyond individual benefit, Stoxo represents a step forward for the broader financial sector by fostering inclusivity and boosting retail participation. By providing institutional-grade research capabilities in a digital-first, user-friendly environment, StockGro is advancing financial literacy and enabling more Indians to take an active role in wealth creation.

With the launch of Stoxo, StockGro continues to redefine the boundaries of FinTech innovation, merging advanced technology with a deep understanding of investor needs to shape a more informed, empowered, and inclusive investing future for India.

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Did Bill Gates Predict GPT-5’s Disappointment Before Launch?

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There had been a lot of hype and anticipation building around GPT-5 prior to its recent launch. OpenAI touted the tool as the smartest AI model while comparing it to an entire team of PhD-level experts. GPT-5 ships with a plethora of next-gen features across a wide range of categories, including coding, writing, and medicine.

The ChatGPT maker’s CEO, Sam Altman, previously claimed that something “smarter than the smartest person you know” will soon be running on a device in your pocket, potentially referring to GPT-5. However, the AI firm has received backlash from users following the model’s launch and its abrupt decision to deprecate the model’s predecessors.





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