Billionaire Bill Ackman's hedge fund unveils a new Alphabet stake worth over $1 billion in a nod to the company's AI push

• Famed investor Bill Ackman's hedge fund has revealed a new stake in Alphabet.
• Pershing Square has bet big on Google's parent company, snapping up more than $1 billion worth of shares.

Billionaire investor Bill Ackman's hedge fund revealed it newly bought Alphabet shares worth over $1 billion as the company ramps up its foray into artificial-intelligence technologies.

Pershing Square Capital Management snapped up more than 10 million shares in Google's parent company – buying about 2.2 million Class A shares and 8.1 million Class C shares, according to a first-quarter portfolio update released on Monday.

The big bet on Alphabet comes as the internet giant joins 2023's AI boom, triggered by the debut of OpenAI's ChatGPT.

Just last week, Alphabet made several AI announcements at its developer conference that's helped add $131 billion to the company's market value. Alphabet class A shares are up about 30% so far this year.

"With generative AI we are taking the next step. With a bold and responsible approach, we are reimagining all our core products, including search," Alphabet CEO Sundar Pichai said at the conference.

Alphabet announced "AI Snapshot" for Google Search, while also revealing a new large language tool, called PaLM 2.

Ackman has been vocal about artificial intelligence's rise to prominence, warning against a pause in AI development given it would be detrimental to national security, after Elon Musk and others called for a 6-month halt.

Meanwhile, Pershing Square cut its stake in consumer-facing brands including Chipotle, Hilton and Lowes. Ackman's fund also kept a position of 24.2 million shares in Restaurant Brands International unchanged.