Wall Street’s enthusiasm for artificial intelligence companies is undergoing a dramatic reversal, with OpenAI losing favor while Alphabet Inc. rises in prominence, according to Bloomberg. OpenAI, the creator of ChatGPT, is facing growing questions about its lack of profitability and the pressure to expand rapidly to fund its massive spending commitments. Meanwhile, Alphabet is being viewed as a deep-pocketed AI competitor, bolstered by its Gemini AI model, cash reserves, and a network of adjacent businesses.
“OpenAI was the golden child earlier this year, and Alphabet was looked at in a very different light,” said Brett Ewing, chief market strategist at First Franklin Financial Services. “Now sentiment is much more tempered toward OpenAI.” This shift has placed heavy selling pressure on companies linked to OpenAI, including Oracle Corp., CoreWeave Inc., and Advanced Micro Devices Inc., as well as Microsoft Corp., Nvidia Corp., and SoftBank, which holds an 11% stake in OpenAI. Conversely, Alphabet’s momentum is lifting both its own stock and those of affiliated firms like Broadcom Inc., Lumentum Holdings Inc., Celestica Inc., and TTM Technologies Inc.
The change has been swift. Just weeks ago, companies tied to OpenAI were fueling significant market rallies, but now those connections are seen as a potential liability. Concerns around financing complexity, circular deals, and debt exposure have intensified scrutiny on OpenAI, while Alphabet’s resources and diverse business operations provide reassurance to investors. According to Bloomberg, OpenAI-linked stocks have gained 74% in 2025, trailing the 146% jump in Alphabet-exposed stocks, compared with the 22% increase in the Nasdaq 100 Index.
The skepticism toward OpenAI intensified after the release of GPT-5 in August to mixed reviews, while Alphabet’s latest Gemini AI model received strong acclaim. In response, OpenAI CEO Sam Altman declared a “code red” to improve ChatGPT’s quality, delaying other projects to focus on its core product. Analysts note that Alphabet’s advantages extend beyond Gemini, with significant cash reserves, successful subsidiaries like YouTube and Waymo, and operations spanning Google Cloud and semiconductor manufacturing.
“There’s a growing sense that Alphabet has all the pieces to emerge as the dominant AI model builder,” said Brian Colello, technology equity senior strategist at Morningstar. Investors are increasingly questioning whether OpenAI can deliver the revenue growth needed to support its ambitious spending, raising financial risks for both the company and its partners, including Oracle and AMD.
Stocks tied to Alphabet’s AI initiatives are thriving, with Lumentum shares tripling and Celestica’s stock rising 252% in 2025. Broadcom, which produces chips for Alphabet’s AI, has seen its stock jump 68% since the end of last year. By contrast, OpenAI’s public relations missteps and the revenue-spending gap of roughly $207 billion through 2033, according to HSBC, have amplified investor caution.
Despite the turbulence, some analysts see potential buying opportunities in OpenAI-linked companies, which are trading at discounts compared to Alphabet-affiliated stocks for the first time since 2016. Investors remain hopeful that long-term demand and monetization strategies across industries will ultimately underpin growth.
