What happened
Alphabet reported a profit that included $10.7 billion in net gains from equity securities, partly from a private company. Amazonâs third-quarter profit rose 38%, boosted by a $9.5 billion pretax gain from its investment in Anthropic, an AI startup. Both companiesâ stakes in Anthropic contributed significantly to their recent profits.
Why it matters
- The investments in Anthropic have generated substantial paper gains for both Alphabet and Amazon.
- These gains highlight the growing financial impact of private generative AI companies on major public firms.
- The profits reflect increasing market value in AI startups even before widespread commercial returns.
Key facts
- 1. Alphabetâs profit included $10.7 billion in net gains on equity securities.
- 2. Amazonâs third-quarter profit increased by 38%.
- 3. Amazon recorded a $9.5 billion pretax gain from its Anthropic investment.
