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Alphabet is shifting from an asset-light ad distributor to a high-capex, vertically integrated provider of synthesized AI intelligence, trading near-term free cash flow for computational utility dominance.
Custom TPUs let Alphabet absorb AI inference costs and undercut competitors who pay a hardware tax to third-party vendors, creating a supply-side moat.
BIS defines a new 'sovereign-financial stability nexus' where record public debt and non-bank financing amplify sovereign bond swings and can tighten financial conditions.