Alphabet Shares Rebound on Anthropic AI Partnership Buzz Amid Market Volatility

David Einhorn, founder of Greenlight Capital, is cautious about the artificial intelligence investment boom, choosing to avoid AI investments despite the sector's vast funding and growth projections. He highlights the challenges in calculating the true returns on AI-related infrastructure, warning of potential risks similar to past tech bubbles. Meanwhile, Alphabet, Google's parent company, is experiencing renewed investor confidence driven by advancements in AI that boost its Search business and cloud platform. The company’s stock has surged significantly, with analysts optimistic about its future growth fueled by AI innovations like the upcoming Gemini 3.0 model and expanded data center capacity. Additionally, some investors view Alphabet as an undervalued AI leader, noting its strong data advantages and diverse product integration in daily life, despite previous market skepticism. This contrast illustrates the differing investment approaches in the AI space, with some cautious on valuation and others bullish on strategic AI deployment.