Soros Bets Big on AI with Amazon and Google Stocks: Is This Genius or Madness?
Alright, so George Soros, the guy who famously made a killing betting against the British pound, is now throwing serious cash at Amazon and Google. AMZN and GOOGL. The Magnificent Seven darlings. Supposedly, this is because of AI. He's gone full-on "if you can't beat 'em, join 'em," despite his earlier warnings about AI being a "mortal threat to open societies."
The Irony Is Thicker Than Gravy
Let's be real: Soros is no dummy. But this smells fishy. He literally said he's "instinctively opposed to A.I." So, what gives? Did he suddenly have a come-to-Jesus moment and realize AI is the future? Or is something else going on here?
Maybe Soros is playing 4D chess while the rest of us are stuck in checkers. Buy up the AI stocks, profit from the boom, and then... I don't know, short the entire sector when he decides it's all a house of cards? That's just my cynical brain working overtime.
Amazon, offcourse, is using AI to optimize its logistics, power Alexa, and generally take over the world. Google is... well, Google is AI at this point. Their new Gemini 3 model is supposedly blowing the competition out of the water, and they're even getting Meta to consider using their TPUs (Tensor Processing Units) instead of just relying on NVDA's chips.
Google's AI Gamble: Genius or Just Catching Up?
Speaking of Nvidia, NVDA stock took a hit on the news that Meta might be ditching them for Google's AI chips. Is this the beginning of the end for Nvidia's dominance? Probably not. They're still printing money hand over fist. But it does show that Google is finally getting its act together in the AI hardware game. It's easy to forget, with all the hype around OpenAI and MSFT stock, that Google was doing AI way before it was cool. Nvidia Shares Drop on Report of Google Challenge in AI Chips
But is this enough to justify Soros betting the farm on GOOG stock and AMZN stock? Analysts are tripping over themselves to slap "Strong Buy" ratings on both companies, with price targets that seem to defy gravity. But analysts are paid to be optimistic. Give me a break. AMZN and GOOGL: Billionaire George Soros Pulls the Trigger on 2 ‘Magnificent 7’ Stocks
And don't even get me started on the "AI bubble" talk. Remember the dot-com bubble? Amazon lost 90% of its value back then. Are we headed for a repeat? It sure feels like it. Everyone's throwing money at anything with the letters "A" and "I" in it, regardless of whether it actually makes sense.
I'm not saying Amazon and Google are bad companies. They're juggernauts. But are they worth the insane valuations they're currently commanding? That's the million-dollar question. Or, in Soros's case, the billion-dollar question.
The Cloud Wars: AI's New Battlefield
Google Cloud is also landing big deals, like that multi-million dollar contract with NATO. Good for them. But let's not pretend that Google Cloud is suddenly going to overtake Amazon Web Services. AWS is still the king of the hill, and everyone else is just fighting for scraps.
And what about the other players in the AI game? Where does AAPL fit into all of this? Or AMD stock? Or even TSLA, with its self-driving car ambitions? They're all vying for a piece of the pie, and it's going to be a bloodbath.
Then again, maybe I'm just being a grumpy old man yelling at the cloud. Maybe AI really is the future, and Soros is a genius for getting in on the ground floor. But I still can't shake the feeling that this whole thing is overhyped and unsustainable.
A Fool and His Money...
Soros can do whatever he wants with his billions. But me? I'm staying on the sidelines and watching this whole thing play out.
