Alphabet Sinks 6%, Amazon Slides 4% Amid AI Capex Anxiety Across the Hyperscalers
Investors worried Alphabet’s 2026 AI spending, which tops $452 billion across hyperscalers, may not produce returns fast enough as key DeepMind researchers leave.
- Alphabet shares sank 6% on Monday, pacing for their worst day in a year as investors fretted over artificial intelligence monetization and two high-profile research departures.
- Google's talent concerns began last week when vice president of engineering Noam Shazeer left for OpenAI, followed by DeepMind VP John Jumper announcing Friday he is joining rival Anthropic.
- Aggregate hyperscaler capital expenditures top $452 billion for 2026, raising fears that artificial intelligence monetization is lagging behind the aggressive infrastructure buildout.
- Broader tech weakness followed, with Amazon sliding 4% and a Bloomberg index tracking the Magnificent Seven stocks falling 2.2% as Microsoft CEO Satya Nadella questioned dependence on "AI Giants."
- While Reddit sentiment turned bearish at 32, some analysts view the pullback as a buying opportunity for dominant franchises trading at 18 to 22 times earnings with strong long-term growth prospects.
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13 Articles
Google stock drops 7% as loss of top AI talent to OpenAI and Anthropic deepens investor concerns - Tech Startups
Google’s AI spending spree was supposed to reassure Wall Street that the company could keep its edge in the race against OpenAI, Anthropic, and Microsoft. Instead, investors got a very different signal this week: two of the company’s most prominent […] The post Google stock drops 7% as loss of top AI talent to OpenAI and Anthropic deepens investor concerns first appeared on Tech Startups.
Why Alphabet Stock Just Crashed
Key PointsTwo key Google employees have left the company's AI division in the past week, to work for competitors.Google's loss is now OpenAI's and Anthopic's gain.10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock tumbled 6% through 11:50 a.m. ET Monday on some bad news from HR: Apparently, two of the tech giant's biggest AI wizards have jumped ship -- for two of Alphabet's biggest competitors in the AI space.…
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