1 Ultimate Picks-and-Shovels AI Stock That Has a Billionaire Investor Loading Up

Core Viewpoint - Elliott Management, a prominent activist investor with approximately $80 billion in assets, is making significant investments in The London Stock Exchange Group (LSEGY), indicating a strong belief in the company's undervalued potential [1]. Group 1: Investment Rationale - Elliott Management is focusing on the infrastructure that supports AI rather than the AI models themselves, positioning LSEGY as a critical player in the financial data sector [2]. - LSEGY controls over 33 petabytes of specialized financial data, which is more than three times the size of the dataset commonly used to train large language models [3]. - Approximately 90% of LSEGY's Data & Feeds revenue comes from sources that AI models cannot access through public channels, highlighting the company's unique value proposition [5]. Group 2: Revenue Breakdown - LSEG's Data & Feeds business generates over 20% of total revenue, with real-time data accounting for 45% of this segment, sourced from 575 global exchanges [4]. - An additional 25% of Data & Feeds revenue comes from specialized, proprietary content, including exclusive agreements and a comprehensive deals database [4]. Group 3: Strategic Partnerships - LSEG has formed a partnership with Microsoft, which acquired a 4% stake worth $2 billion as part of a 10-year collaboration, enhancing LSEG's data distribution capabilities through Microsoft Azure and other platforms [6].