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.”
Five people have been killed in a shooting in the northern German town of Stade, with a male suspect arrested and taken into police custody, authoriti...
The U.S. and Iran have agreed to 'stand down' and resume technical talks, allowing vessels allowed to move freely under the interim peace deal, a U....
Labour lawmaker Andy Burnham outlined a state-led economic vision expanding public control over services such as water and boosting regional growth ...
Spain's largest migrant regularisation programme entered its final hours on Monday, as non-governmental organisations (NGOs) rushed to help undocument...
Iran and Oman have held the first meeting of a new joint committee to discuss the future management of the strategically important Strait of Hormuz, a...
Five people have been killed in a shooting in the northern German town of Stade, with a male suspect arrested and taken into police custody, authorities said on Monday. Police said the motive remains unclear.
The U.S. and Iran have agreed to 'stand down' and resume technical talks, allowing vessels allowed to move freely under the interim peace deal, a U.S. official said.
Spain's largest migrant regularisation programme entered its final hours on Monday, as non-governmental organisations (NGOs) rushed to help undocumented migrants submit residency applications before the scheme closes on Tuesday.
Russia’s greatest strategic asset is not only military power, but political will
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Fourteen people were killed on Sunday after a helicopter belonging to Saudi oil giant Aramco crashed in Ras Tanura, according to Saudi state media.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
Rescue teams raced on Sunday to find more survivors of the two powerful earthquakes that struck Venezuela this week, with signs of life bringing occasional relief to a grim quest to whittle down a list of tens of thousands missing.
The United States and Iran have agreed to halt strikes against each other, in a potential breakthrough after weeks of escalating tensions. The two sides are expected to meet in Doha on Tuesday to address their dispute over the Strait of Hormuz.
American technology company Snap has launched its first augmented-reality (AR) glasses for consumers, marking a major push into wearable computing as tech firms race to redefine personal devices in the AI era.
The Canadian government has introduced a digital safety bill that would ban children under the age of 16 from using social media, unless platforms meet specific safety standards.
NASA has named three American astronauts and one Italian astronaut to fly on its Artemis III mission, a major orbital test planned for late next year that will evaluate lunar landing vehicles developed by SpaceX and Blue Origin.
China will send an astronaut to its space station on Sunday for a one-year mission, the longest duration for the country so far. The mission will help study long-duration human physiology in space as China works toward a crewed Moon landing by 2030.
Anxiety over artificial intelligence is hardening among young workers as executives promote faster adoption and companies point to automation in fresh job cuts.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment