Alphabet loses US$692 billion in market value as AI questions rise
Investors are questioning Alphabet’s AI edge as top researchers leave and the company delays its next Gemini model while spending rises sharply.
- Alphabet shares have dropped 15% from their May peak, wiping out $692 billion in market value as investor concerns mount over leadership departures and delayed AI model releases.
- Earlier this month, Jeff Dean, Google's former chief scientist, departed to launch a startup, while Demis Hassabis stepped down as CEO of Google DeepMind to accept a chairman role; development of Gemini 3.5 Pro faces delays.
- The firm plans to spend as much as $205 billion on AI this year, up from prior guidance of $180 billion to $190 billion, yet faces investor skepticism following a $25 billion bond offering in early August.
- Analysts expressed caution regarding heavy capital expenditures as Alphabet's free cash flow dwindles, with investors increasingly demanding proof that massive AI data center spending will translate into tangible returns.
- Despite recent volatility, a Wall Street Journal columnist argued that Google retains a 'deep bench' and 'long history of investing in AI,' suggesting the company possesses resources to regain competitive footing.
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(Seoul = Yonhap News) Reporter Jung Joo-ho = As the stock price of Google's parent company, Alphabet, fell nearly 15% from its all-time high last May, its market capitalization dropped to 6,000... in just over three months
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The spokesman-Review
Decatur DailyAlphabet loses $700 billion in market value as AI questions rise
For much of the last year, Alphabet Inc. has been the Big Tech stock to beat as investors bet that it was the most-likely winner from the artificial intelligence boom.
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