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Alphabet has its worst day in over a year on AI concerns after high-profile exits
Google ended its worst day on the stock market in over a year, as artificial intelligence concerns mounted and two high-profile researchers departed for rivals in recent days.
Shares of parent company Alphabet closed down about 5% on Monday, underperforming both the Nasdaq and the other tech megacaps. It was the steepest slide since about a 7% decline in May 2025.
The brain drain concerns began last week when Google's vice president of engineering and a co-lead of its Gemini AI models, Noam Shazeer, announced Wednesday that he was leaving the company to join rival OpenAI. Shazeer's departure came less than two years after he returned to Google.
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Why Alphabet (GOOGL) Shares Are Getting Obliterated Today
Shares of online advertising giant Alphabet (NASDAQ:GOOGL) fell 5.5% in the afternoon session after a confluence of high-profile AI talent departures, mounting legal and regulatory pressure, and investor anxiety over the scale of its AI spending weighed on sentiment.
The sell-off was sparked by news that two key AI researchers were leaving the company. Noam Shazeer, a VP of engineering, would join rival OpenAI, while John Jumper, a Nobel Prize-winning DeepMind VP, would leave for Anthropic. These exits raised concerns about Alphabet's ability to compete in the AI race.
Adding to the pressure, a California court denied Google and YouTube a new trial in a case where a jury found their platforms were designed to be addictive for young users. This ruling exposes Alphabet to potential damages and a wave of similar lawsuits. Investors are also growing uneasy about the large sums of money Alphabet is allocating to artificial intelligence, with doubts about the company's ability to remain profitable amid such heavy investment.
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