Alphabet is emerging as a frontrunner in the global artificial intelligence race, as analysts and executives say Google has overtaken OpenAI, marking a sharp reversal from a year ago when the company was widely seen as lagging.
That change in sentiment was underscored during Alphabet’s latest earnings call, its first since releasing the Gemini 3 model. Chief executive Sundar Pichai said AI investments are now translating into broad-based revenue growth across the company.
“Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board,” Pichai said.
Still, investors reacted cautiously after Alphabet said it could spend up to $185 billion on capital expenditure this year, potentially more than doubling spending from 2025. Alphabet shares fell around 3% on Wednesday as concerns grew over the scale of future investment.
Pichai said the Google Gemini app has surpassed 750 million monthly active users, up from 650 million in the previous quarter. While that still trails ChatGPT, OpenAI’s flagship product, Google’s user growth and engagement are accelerating, particularly since the launch of Gemini 3.
Gemini is now integrated into Google’s search “AI Mode” and powers its enterprise AI offering, which has reached 8 million paying licences, according to the company.
Alphabet’s cloud business has been a major beneficiary. Revenue at Google Cloud surged 48% in the December quarter, exceeding Wall Street expectations and reinforcing investor confidence that AI spending is producing tangible returns.
Since early 2025, Alphabet’s shares are up more than 80%, even after this week’s pullback. Analysts say the company is now viewed as a peer to Nvidia and Apple among the most valuable firms globally.
By contrast, companies closely tied to OpenAI have come under pressure. Shares of Microsoft, which holds a major stake in OpenAI and Oracle, which has large contracts linked to OpenAI’s infrastructure, have fallen sharply in recent months.
Investors are increasingly worried about whether OpenAI can finance its expanding list of multi-billion-dollar commitments while continuing to operate at a loss.
“There’s a narrative emerging where the market is favouring Google versus OpenAI,” said Paul Meeks, head of tech research at Freedom Capital Markets. “Late last year, investors started questioning how much exposure companies really want to OpenAI’s spending needs.”
Alphabet’s aggressive investment plans reflect both the scale of the opportunity and the risk. Bernstein analyst Mark Shmulik warned that combined capital spending by major technology firms could approach $1 trillion in 2026.
“For that to pay off, the total addressable market for AI-driven products needs to expand very quickly,” he said.
For now, many investors appear willing to back Google’s strategy, betting that its deep cash reserves, vast user base and growing enterprise footprint give it a stronger foundation than rivals.
As one portfolio manager put it: “Right now, Google has the hot hand.”
Prosecutors in Paraguay have charged former President Santiago Peña and ex-central bank chief Carlos Carvallo Spalding over the collapse of ...
At least six people have been killed and 15 injured after a gunman opened fire in Kraków's main square, Polish authoritie...
The U.S. military has established a new unit to stop Iran transporting advanced weapons systems via its land borders and the Caspian Sea. ...
Democrats' sweeping victory in the U.S. midterm elections has sent technology stocks plunging, as investors fear tougher AI regulations could slow infrastructure development and threaten the boom that has driven market gains this year.
Romanian authorities said late on Thursday that two additional planes had received bomb threats including a KLM flight to Tel Aviv that had a layover in Bucharest.
U.S. President Donald Trump has predicted a breakthrough in efforts to end the war in Ukraine after meeting Russian President Vladimir Putin’s envoy, Kirill Dmitriev, ahead of U.S.-mediated peace talks between Moscow and Kyiv in Abu Dhabi on 10-11 November.
Two people, including a child, were killed and 16 others injured when an intercity bus crashed in eastern France on Friday morning, authorities confirmed.
U.S. Defense Secretary Pete Hegseth has vowed to fight attempts to impeach him, dismissing the growing campaign against him as politically motivated amid mounting criticism of his handling of the war in Iran.
U.S. President Donald Trump said on Friday he would support states seeking to generate wealth through artificial intelligence, pledging to work with them as Democrats outlined plans to address the technology following Tuesday’s elections, which unsettled markets.
Dubai will host GITEX Global 2026 from 7 to 11 December, bringing together global technology leaders, governments and investors as surging demand for artificial intelligence (AI) puts pressure on energy supplies, computing capacity and digital infrastructure.
Saudi Aramco's acquisition of a 49 per cent stake in artificial intelligence (AI) company HUMAIN is putting a spotlight on a wider investment question: why are some of the world's biggest energy companies moving deeper into AI, and what do they expect to gain?
A Chinese-made AI chip has matched Nvidia’s H200 in tests conducted by its developer, marking a potential breakthrough in China’s efforts to reduce its dependence on foreign technology.
Two of the United States' largest technology companies reported robust revenue growth in their latest quarterly results, underscoring the continued impact of artificial intelligence and cloud computing on the sector.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment