US NEWS: Once hailed as the unstoppable force behind the artificial intelligence boom, OpenAI is suddenly finding itself on the defensive. Investors who rushed to buy any stock even loosely connected to the maker of ChatGPT are now stepping back, while shares tied to Alphabet, Google’s parent company, are enjoying renewed enthusiasm.
The shift has been swift and unmistakable. Just a few months ago, any hint of a partnership with OpenAI could send related stocks soaring. Today, those same connections are acting as a weight on share prices for companies ranging from Microsoft and Nvidia to Oracle, AMD, and data-center specialist CoreWeave.
Market watchers point to several reasons for the change in mood. Questions about OpenAI’s ability to turn its massive spending into sustainable profits have grown louder. Large financing deals and aggressive expansion plans have raised eyebrows about whether the company can actually afford everything it has promised. At the same time, Alphabet has quietly strengthened its position with well-received updates to its Gemini model and the deep financial resources that come with being one of the world’s most valuable companies.
Brett Ewing, chief market strategist at First Franklin Financial Services, summed up the reversal simply. “OpenAI was the golden child earlier this year,” he said. “Now the sentiment is much more tempered.”
The numbers tell the same story. Stocks linked to OpenAI have risen a respectable 74 percent this year, but that pales beside the 146 percent gain posted by companies tied to Alphabet’s AI efforts. The broader Nasdaq 100, by comparison, is up 22 percent over the same period.
Concerns first surfaced in August when OpenAI released its GPT-5 model to mixed reviews. The doubts deepened last month after Alphabet introduced an improved version of Gemini that earned strong praise from developers and analysts. In response, OpenAI chief executive Sam Altman reportedly declared a “code red” push to sharpen ChatGPT’s performance, pausing other projects to focus on the flagship product.
Analysts say Alphabet brings far more than a competitive model to the fight. With enormous cash reserves, Google Cloud, a growing semiconductor operation, and unmatched data and distribution through services like YouTube and Waymo, the company appears better equipped for the long haul.
Brian Colello, senior technology equity strategist at Morningstar, noted the rapid change in perception. “Just a couple of months ago, most investors would have crowned OpenAI the clear leader,” he said. “Now there is real uncertainty about whether it can live up to the expectations.”
The stakes extend well beyond the two companies themselves. If users begin favoring Gemini over ChatGPT, OpenAI could struggle to pay for the vast computing power it buys from partners like Oracle and AMD. Those suppliers, in turn, have seen their shares soften as the OpenAI glow fades.
Meanwhile, companies working closely with Alphabet are enjoying a strong run. Optical components supplier Lumentum has more than tripled this year. Hardware manufacturer Celestica has jumped 252 percent. Chip designer Broadcom, which builds custom processors for Alphabet’s data centers, is up 68 percent.
Recent OpenAI announcements, once greeted with excitement, are now meeting skepticism. Analysts worry the company may have committed to more spending than its projected revenue can support. A recent HSBC report estimated a potential $207 billion gap between OpenAI’s expected income and planned expenses through 2033.
Some of the unease has been fueled by public comments from OpenAI executives. Chief financial officer Sarah Friar briefly mentioned the possibility of government support for certain financing needs before clarifying that no request had been made. Altman, during a podcast interview, grew testy when pressed on the same funding questions, telling a skeptical host that anyone unhappy with the company’s direction was free to sell their shares.
For now, many investors appear to be doing exactly that, or at least pausing before placing new bets on the OpenAI ecosystem. The once-unquestioned leader of the AI race is discovering that Wall Street’s affection can cool as quickly as it caught fire.