--- title: "Billionaire Investor Makes Huge Bet on Two AI Stocks" type: "News" locale: "en" url: "https://longbridge.com/en/news/295956414.md" description: "Seth Klarman's Baupost Group increased its stakes in Amazon and Alphabet during Q2, signaling confidence in their long-term AI economics despite heavy infrastructure spending. Baupost raised its Amazon position by ~20% to 3.74 million shares and Alphabet stake by ~16% to 1.37 million shares. This move highlights the firms' strong cloud profit growth, with AWS operating income jumping to $27.5 billion and Google Cloud revenue soaring 82%. The investment suggests Klarman sees attractive returns as these tech giants convert AI demand into expanding profits." datetime: "2026-08-14T16:03:30.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295956414.md) - [en](https://longbridge.com/en/news/295956414.md) - [zh-HK](https://longbridge.com/zh-HK/news/295956414.md) generator: "portal-rs" --- # Billionaire Investor Makes Huge Bet on Two AI Stocks Seth Klarman (Trades, Portfolio)'s Baupost Group made a notable push deeper into mega-cap technology during the second quarter, increasing positions in Amazon and Alphabet while also initiating stakes in CME Group and Pershing Square. The moves stand out because Klarman is best known for a disciplined value-investing approach, suggesting Baupost still sees attractive long-term economics in two AI leaders despite the enormous spending required to compete. Baupost is a Boston-based investment manager with a long-term, value-oriented strategy spanning public and private securities. The firm's quarterly 13F filings provide a snapshot of its U.S.-listed equity holdings, although they do not reveal its entire portfolio or the reasoning behind individual trades. Baupost increased its Amazon position to 3.74 million shares from 3.12 million, roughly a 20% increase, while boosting its Alphabet stake to 1.37 million shares from 1.18 million, about 16%. Those additions come as both companies pour unprecedented amounts into AI infrastructure but are also showing powerful underlying growth. Amazon's second-quarter operating income jumped to $27.5 billion from $19.2 billion a year earlier. AWS operating income surged to $16.62 billion from $10.16 billion, strengthening the argument that Amazon's cloud business can help finance its AI expansion. Alphabet's numbers are similarly striking. Second-quarter revenue grew 24%, while Google Cloud revenue soared 82% to $24.8 billion and operating income more than tripled to $8.8 billion. Cloud backlog reached $514 billion. Elsewhere, Baupost more than doubled its Norwegian Cruise Line stake, opened positions in CME, Pershing Square and Axalta, and exited Willis Towers Watson and Vaxcyte. **Investor Takeaway** Klarman's Amazon and Alphabet purchases should not be interpreted as a simple endorsement of the AI trade. The more important signal is that Baupost increased exposure while both companies are converting AI demand into rapidly expanding cloud profits. Investors should watch whether that return continues to justify extraordinary spending. Alphabet now expects $195 billion to $205 billion of 2026 capital expenditures and has warned that infrastructure investment will pressure free cash flow. For Amazon, AWS growth and operating margins remain critical. For Alphabet, Cloud growth, its $514 billion backlog and AI monetization in Search are the key indicators. If profits keep scaling alongside spending, Klarman's purchases could look increasingly prescient. If returns on AI infrastructure weaken, the valuation argument becomes considerably harder. ### Related Stocks - [AMZG.US](https://longbridge.com/en/quote/AMZG.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [CME.US](https://longbridge.com/en/quote/CME.US.md) - [PSHZF.US](https://longbridge.com/en/quote/PSHZF.US.md) - [NCLH.US](https://longbridge.com/en/quote/NCLH.US.md) - [AXTA.US](https://longbridge.com/en/quote/AXTA.US.md) - [WTW.US](https://longbridge.com/en/quote/WTW.US.md) - [PCVX.US](https://longbridge.com/en/quote/PCVX.US.md) ## Related News & Research - [Amazon Not Getting Enough Credit for AI Positioning, Analyst Says](https://longbridge.com/en/news/296520773.md) - [AMZN vs. GOOGL: Rosenblatt Sees One Tech Stock as the 'Most Resilient Leader'](https://longbridge.com/en/news/296515598.md) - [Amazon's $500 Bull Case Puts AWS Under Massive Pressure](https://longbridge.com/en/news/296260529.md) - [Here's how Amazon's stock could nearly double by the end of next year, according to Morgan Stanley](https://longbridge.com/en/news/296134682.md) - [Billionaire Stanley Druckenmiller Dumped Micron and Intel, and More Than 11X'd Duquesne Family Office's Stake in an AI Pioneer](https://longbridge.com/en/news/296084502.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**