Alphabet has lost $692 billion in market value as its shares slid about 15% from a May high, a drop investors link to mounting questions about the company's AI competitiveness.
The selloff has been tied to heavy spending on AI infrastructure, delays to flagship model Gemini 3.5 Pro and a recent $25 billion bond sale, with Alphabet, the parent of Google, also pointing to its tensor processing units and scale of compute as central to its AI strategy.
"Our AI momentum and shipping velocity are at an all-time high," a Google spokesperson said.
The market reaction has been reinforced by personnel moves and execution setbacks, the company lost senior staff to Anthropic and OpenAI, Jeff Dean departed to start a new company and Demis Hassabis shifted to chairman, events that helped trigger a 4% one-day slide that erased $186 billion, and while Google has rolled out Gemini 3.7 Flash it provided no timetable for Gemini 3.5 Pro.
