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Let’s be clear from the jump: George Soros is many things – a a legendary investor, a political force, a man who famously "broke the Bank of England." But he is absolutely not the "Oracle of Omaha." That title belongs firmly to Warren Buffett, and conflating the two is a rookie mistake in this business. With that precision out of the way, the underlying question posed by the title remains a sharp one, and it gets straight to the heart of a fascinating contradiction that’s been brewing on Wall Street.
Not long after the AI boom started its dizzying ascent, Soros himself voiced profound concerns. He cautioned that "nobody can predict where [AI] will take us," adding a chilling caveat: "A.I. helps closed societies and poses a mortal threat to open societies." His stance was instinctively oppositional, even if he wasn't sure "how it can be stopped." You could almost hear the collective murmur across trading desks – a titan of finance, known for his prescient macro bets, warning against the very technology that was starting to redefine market leadership.
Fast forward a couple of years, and the narrative has taken a curious turn. While Soros no longer actively manages Soros Fund Management (a fund boasting $28 billion in assets, for context), he remains its chairman. And his fund, the very entity guided by his ethos, has been making some remarkably significant bets on two of the "Magnificent Seven" stocks – Amazon and Alphabet – both deeply entrenched in the AI revolution. It’s a pivot that feels less like a philosophical shift and more like a pragmatic acknowledgement of an undeniable market force. This isn't an "if you can't beat 'em, join 'em" scenario; it’s more akin to a seasoned poker player, initially skeptical of a new game, deciding to buy into the pot because the stakes are too high to ignore.
The Data on the Table: Soros Fund's AI Play
The numbers from Q3 filings tell a compelling story, one that overrides any previous philosophical hesitations. As reported in AMZN and GOOGL: Billionaire George Soros Pulls the Trigger on 2 ‘Magnificent 7’ Stocks, Soros Fund Management wasn’t just dipping a toe in the water; they took a dive. For Amazon (NASDAQ:AMZN), they acquired a hefty 1,843,329 shares, bringing their total stake to 2,226,187 shares, currently valued at a cool $504 million. That’s a substantial commitment.
Amazon, of course, needs no lengthy introduction. From its humble beginnings as an online bookseller, it's morphed into a sprawling empire touching e-commerce, cloud computing, logistics, and, crucially, AI. The company leverages AI across its vast logistics network, powering everything from demand forecasting to package routing. It’s the brains behind Alexa and the recommendation engines on Prime Video. But the real AI power play for Amazon sits within Amazon Web Services (AWS), its cloud computing arm. AWS offers a comprehensive suite of AI and machine-learning tools for developers and businesses. This segment isn’t just growing; it's sprinting, with sales up 20% year-over-year to $33 billion in 3Q25 (a figure that, to be more exact, represents a substantial portion of the company's overall revenue).
Needham analyst Laura Martin, a known bull, highlights how AI is fundamentally reshaping the amzn stock narrative. She points to Amazon using GenAI to drive revenue upside for both consumers and enterprises. What I find particularly interesting in her analysis is the emphasis on Amazon's unique, best-in-class e-commerce data. This isn't just about building AI; it's about feeding those large language models (LLMs) with proprietary, high-value data sets that could generate incremental revenue from other LLMs. It’s a data moat, plain and simple. Martin rates amzn shares a Buy with a $265 price target, suggesting a 17% upside. The Street consensus is even more bullish, with 40 Buys and 3 Holds, leading to a Strong Buy rating and an average price target of $294.71, implying a 30% premium.
Then there's Alphabet (NASDAQ:GOOGL), the Google parent company, another tech titan whose very existence is now inextricably linked to AI. Google has been an AI pioneer for years, integrating it into Search, Maps, Ads, Android, and its productivity tools. Initially, when OpenAI’s ChatGPT burst onto the scene, there was a narrative – one I saw play out extensively in online forums (a fascinating, if qualitative, dataset of market sentiment) – that Google was under threat. That narrative, however, has largely been put to bed. Google is now widely perceived as a primary beneficiary of the AI boom, especially after the release of Gemini 3, its most advanced AI model yet. This model, with its improved reasoning and multimodal understanding, is being deployed directly into Google Search.
Soros Fund Management also made a significant increase to its googl stock holdings in Q3, purchasing 631,397 shares. Their total stake now stands at 658,367 shares, worth $210 million. Susquehanna analyst Shyam Patil remains positive on google stock, citing secular ad growth, the Cloud ramp, the emergence of AI, and a more shareholder-friendly capital allocation approach. He rates googl shares a Buy with a $350 price target, predicting a 10% return.
Now, here's where my analytical antenna starts twitching. While the Street consensus for googl is a Strong Buy, based on 30 Buys and 7 Holds, the average price target of $312 actually suggests a 2% decline from current levels. This is a classic methodological critique point: how can a stock be a "Strong Buy" when the average target implies a negative return? It suggests either analysts are lagging significantly in updating their targets to match the stock's continuous record-breaking highs, or there's a fundamental disconnect between sentiment and valuation models. This is the kind of data discrepancy that demands scrutiny; you can't just wave it away with enthusiasm.
The Real Signal: Pragmatism Over Philosophy?
What does this all mean for the "new market reality" the title alludes to? My analysis suggests it’s less about a grand philosophical reversal by George Soros himself, and more about the fund’s pragmatic adaptation to a market where AI is not just a trend but an embedded, driving force. The fund's managers, operating within a competitive landscape, simply can't afford to sit on the sidelines while nvda stock, meta stock, and these other tech giants continue to ride the AI wave.
I've looked at hundreds of these filings, and the narrative shift here, from outright caution to aggressive accumulation, is precisely the kind of pivot that demands a closer look. It implies that while the ethical and societal concerns Soros raised about AI are valid and persistent, the immediate financial imperative is to engage with the technology's primary beneficiaries. It's a strategic move, a calculated hedge against missing out on the biggest technological shift of our generation. The question isn't whether AI poses a threat, but whether you can afford to be completely out of the game while it reshapes the global economy. This isn't a moral endorsement; it's a market reality.
The Unavoidable Algorithm
The data doesn't lie. George Soros's fund, for all his personal reservations about AI, has made a clear, financially driven decision to invest heavily in its leading players, amzn and googl. This isn't a signal that AI is suddenly harmless; it's a stark reminder that in the high-stakes world of capital markets, even the most profound philosophical objections can be superseded by the undeniable gravitational pull of growth and market momentum. It's a testament to the idea that sometimes, you just have to dance with the devil if he's the one playing the music everyone's listening to, especially when that music is generating billions.