Microsoft, Amazon and Alphabet’s stakes in private AI companies such as Anthropic and OpenAI are artificially inflating their quarterly earnings. According to LSEG, S&P 500 earnings growth reached 48% year-over-year in the latest quarter, but this figure drops to 29% when excluding gains from private AI investments. Amazon posted a 240% jump in earnings, including a $53.4 billion gain primarily tied to Anthropic, while Alphabet saw near 300% bottom-line growth largely driven by its stakes in SpaceX and Anthropic. These investment gains are recorded under « other income » and could reverse in upcoming quarters as market valuations fluctuate.
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