Wall Street’s attitude towards artificial intelligence (AI) has changed dramatically in recent weeks, with two major players – OpenAI and Alphabet Inc. – being at the center of this shift. OpenAI, the maker of ChatGPT, is facing concerns over its lack of profitability and rapid growth, which has led investors to question whether it can sustainably deliver returns.
In contrast, Alphabet’s AI efforts are seen as more solid, with the company having a strong track record in developing innovative technologies like Google Cloud, semiconductor manufacturing, and successful subsidiaries like YouTube and Waymo. As a result, shares associated with Alphabet’s AI business have surged, while those linked to OpenAI have come under heavy selling pressure.
This sentiment shift has significant implications for companies connected to both OpenAI and Alphabet, including Oracle Corp., CoreWeave Inc., and Advanced Micro Devices Inc. The latter saw its stock price jump 68% since last year after winning a contract with Alphabet, which will provide it with the necessary resources to build tensor processing units (TPUs) that power Alphabet’s AI efforts.
The skepticism surrounding OpenAI can be dated back to August when it unveiled GPT-5, but its recent struggles have highlighted the need for rapid growth and significant spending commitments. This has led investors to become more cautious about investing in companies linked to OpenAI, with many seeing the current market conditions as a “dot-com era on steroids.”
As the AI space continues to evolve, investors are taking a wait-and-see approach, focusing on long-term sustainability rather than short-term gains. While there may be some buying opportunities for companies like Oracle and AMD, which operate in areas that see ongoing demand, it is essential to carefully assess their investment cases before making any decisions.
Ultimately, the success of companies connected to both OpenAI and Alphabet will depend on their ability to deliver on their promises and drive growth through innovation. As investors continue to navigate this rapidly changing landscape, it is crucial to remain vigilant and adapt to new developments that shape the future of AI.
Source: https://fortune.com/2025/12/07/openai-stock-market-risk-sam-altman-alphabet-google-gemini