Alphabet (GOOG) is quietly becoming one of the most aggressive investors in U.S. healthcare, pumping billions into biotech, life sciences, and pharma stocks as part of a sweeping portfolio shift.
According to its latest 13F filing with the SEC, roughly 40% of the Google parent’s total holdings are now health-related.
That includes a staggering 26.9% allocated to biotech alone just behind software at 27.7%, based on a breakdown from Bourbon Capital, a widely followed investment analyst on X.
The rest of the portfolio includes a 5.3% allocation in life sciences, 5% in healthcare equipment and supplies, and 1.7% in pharmaceuticals.
Among the biggest standouts in Alphabet’s healthcare lineup are Oscar Health, Fulcrum Therapeutics, Kronos Bio, and Revolution Medicines.
“Why are they so obsessed with healthcare?” Bourbon Capital asked this week.
Alphabet’s not new to the space. For more than a decade, it’s made quiet but consistent moves through GV, its investment arm.
And according to a recent report, Alphabet’s track record investing in health companies may have outperformed its own direct ventures in the field, including its still-running but loosely defined Google Health unit.
AI-powered medicine is the endgame
What’s changed recently is Alphabet’s AI-first strategy, with healthcare being the key battleground in the space.
According to the company’s Google Health page, its clinical teams are now doubling down on AI “to improve the availability and accuracy of health technologies globally.”
One major push is Med-Gemini, a suite of medical large language models built on Gemini, Google’s flagship AI platform.
The company is also rolling out health-specific tools like Vertex AI Search and MedLM to support hospitals and researchers in medicine and life sciences.
That focus fits into Alphabet’s broader AI arms race.
The company is planning $75 billion in capital expenditures next year, with $60–$65 billion going straight to AI-related infrastructure, Google CEO Sundar Pichai said. That means servers, data centers, and the massive compute needed to power LLMs.
“There will be an increase in investment in technical infrastructure, primarily for servers, followed by data centers and networking,” CFO Anat Ashkenazi confirmed on the company’s latest earnings call.
Alphabet stock is still down 11% year-to-date but has bounced more than 17% from its April lows as markets recover.
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