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In Sharepoint Online, is it possible to create an alert for when someone shares a file with an external user? Or, if that is too specific, an alert for just using the Share function to share with any user?

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You can use the Audit Log in O365 to create alerts on specific event.

Here you find the possible sharing and access request activities: https://docs.microsoft.com/en-us/office365/securitycompliance/search-the-audit-log-in-security-and-compliance#sharing-and-access-request-activities

And here is shown how to create an alert based on those activities: https://docs.microsoft.com/en-us/office365/securitycompliance/create-activity-alerts

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Go to https://compliance.microsoft.com and then click Alerts > Alert policies->New alert policy->You can choose the corresponding activity:

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For more detailed information, refer to the following articles:

https://docs.microsoft.com/en-us/office365/securitycompliance/alert-policies

https://www.anupams.net/alert-policies-office-365/

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