Alphabet briefly tops Nvidia in market cap on AI cloud deal news

Alphabet briefly surpassed Nvidia in market capitalization during after-hours trading following a report that AI startup Anthropic committed $200 billion to Google Cloud over five years. This deal highlights Alphabet's strong position in AI, spanning AI models, cloud infrastructure, and custom chips, fueling a 160% stock rise in the past year. However, some analysts warn of concentration risk since Anthropic's commitment could represent over 40% of Google's cloud backlog. Investors await Google's upcoming I/O event for clarity on its AI strategy and sustainable revenue growth amid heavy capital spending.