Alphabet Loses $692 Billion in Value as AI Delays and Talent Exits Deepen Doubts
Updated
Updated · Yahoo Finance · Aug 27
Alphabet Loses $692 Billion in Value as AI Delays and Talent Exits Deepen Doubts
2 articles · Updated · Yahoo Finance · Aug 27
Summary
Alphabet shares have fallen 15% from their May 13 peak, wiping out $692 billion in market value and making the company the S&P 500’s second-biggest drag over that stretch.
Investor sentiment has turned on fears Google is losing ground in AI, with heavy infrastructure spending and a delayed rollout of its new Gemini model undermining confidence in near-term returns.
Personnel losses have sharpened those concerns: Google lost two senior employees to Anthropic and OpenAI, Jeff Dean left to start a company with several prominent colleagues, and Demis Hassabis moved from DeepMind CEO to chairman.
Those talent worries already jolted the stock on Aug. 5, when Alphabet dropped 4% in one session and shed $186 billion in value.
The setback comes after Alphabet had surged more than 150% in the prior 12 months, even as the broader AI talent war intensified with Meta, OpenAI and Apple battling over researchers with nine-figure pay packages and lawsuits.