Alphabet Taps Investors to Fund Its AI Buildout

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Luke Vargas (0:33)

California voters head to the polls in a closely watched primary to choose Governor Gavin Newsom's successor. Plus, a massive Russian attack on cities across Ukraine kills at least 11 people.

And cap in hand, Google asks for billions to fund the AI buildout.

Alex Frangos (0:50)

Companies like Google and Microsoft have been using their internal profits to reinvest in AI. They've been raising debt, which they have to pay back. And so this is the next leg. We're going to go to our shareholders and ask for more money, which is a commitment.

Luke Vargas (1:06)

It's Tuesday, June 2nd. I'm Luke Vargas for the Wall Street Journal. And here is the AM Edition of What's News, the top headlines and business stories moving your world today.

It is primary day in a number of US states, including the nation's largest, California. National politics reporter Eliza Collins has been covering the race for governor there, despite some early chaos in the field of Democrats seeking the office, including Representative Eric Swalwell's abrupt exit from the contest amid sexual misconduct allegations. The contest has quieted down considerably.

Eliza Collins (1:43)

So unlike most places, California has a top two primary system, which means everybody is competing against one another and the top two candidates make it out. California should not be a state where Democrats are worried. But they were briefly because there were so many Democrats in the race that were splitting the vote, that for a few weeks, two Republicans were the leading candidates in polls. And that meant that there was a chance Republicans would be the only two to go to the general election. President Trump actually helped them out here by endorsing one of the candidates.

So the Republican field consolidated behind Steve Hilton, a former advisor to former British Prime Minister David Cameron and a Fox News host. The two Democrats are Javier Becerra, the former Health and Human Services Secretary, and Tom Steyer, a billionaire turned Democratic activist. While these people are somewhat known, they're not big enough names and the party has not consolidated around any one candidate.

Luke Vargas (2:50)

By comparison, Eliza said that L.A.'s mayoral race, pitting incumbent Democrat Karen Bass against fellow Dem Nithya Raman and Republican Spencer Pratt could provide the fireworks, with polls showing a tight three-way contest.

Eliza Collins (3:04)

Pratt was seen as a complete long shot. I think he is still absolutely a long shot to be mayor of Los Angeles. It's just such a Democratic place. But what his rise really does show is that the current mayor, Karen Bass, the incumbent, is not popular.

This is a city that was ravaged by wildfires, continues to have homelessness, continues to have problems with unaffordability, and Pratt's campaign is really hitting her on all of those things. Polling shows that Pratt has a real chance, as does Rahman, of the two of them keeping Bass from hitting above 50%, forcing her into a runoff.

Luke Vargas (3:43)

Beyond the Golden State, voters in Iowa, Montana, New Jersey, New Mexico, and South Dakota are also heading to the polls today. We'll recap any key results from those contests tomorrow morning.

Let's turn to Ukraine now, where Russia launched an overnight barrage of 73 missiles and over 600 drones, killing at least 11 people and damaging civilian infrastructure across multiple cities, including the capital Kiev. While Ukrainian air defenses intercepted the majority of the weapons, rescue operations continue for those still trapped beneath the rubble. It comes after Ukrainian President Volodymyr Zelenskyy warned last week that Russia was preparing a renewed assault and pressed allies for more air defense missiles to counter the attacks. Ukrainian MP Oleksiy Gontorienko spoke to the BBC's Today program from Kiev this morning and said the attention of world leaders had been drawn away by other conflicts.

Oleksiy Gontorienko (4:41)

The United States now definitely completely observed by what's going on in the Middle East. And in reality, the negotiations which were started by President Trump for last year, they have no result for the moment.

Luke Vargas (4:55)

The Russian Defense Ministry said the strikes were a response to previous Ukrainian attacks. The Trump administration is proposing a new 25 percent tariff on a swath of imports coming from Brazil. Top US trade official Jameson Greer says the move comes after a year-long investigation into unfair trade practices ranging from digital trade policies to illegal deforestation. While the levies hit areas like electronic payments and ethanol, everyday staples like beef and coffee are being left off the list. The new tariffs are subject to public comment, and a decision is expected by July 15