Alphabet loses $700 billion in market value as AI costs surge
Alphabet’s shares have fallen more than 15% since May, erasing about $700 billion in market capitalisation amid worries over rising AI expenses and delayed product launches.
The tech conglomerate’s stock slipped sharply from its recent peak, wiping out roughly $700 billion in value. Investors are uneasy about the company’s growing AI billings and the lack of a breakthrough product, highlighted by the departure of its chief scientist and the reassignment of its leading AI researcher. Delays affecting the upcoming Gemini model have added to the pressure. Nonetheless, a columnist notes that Google still boasts a strong portfolio, deep talent pool, and a long history of AI investment, and points to a recent leadership reshuffle that includes co-founder Sergey Brin returning to daily duties as a possible stabilising factor.
Why it matters
Alphabet’s steep valuation loss signals heightened market sensitivity to AI spending and could affect broader tech sector confidence.
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