Alphabet posts worst day in over a year as senior AI departures rattle investors
Alphabet shares fell 6.8% on Monday, the steepest one-day drop since March 2025, after the resignations of three senior AI executives over the past three weeks shook investor confidence in the company's Gemini roadmap.
Alphabet shares fell 6.8% in Monday's session to close at $142.30, marking the steepest one-day decline since March 2025. The drop followed news that Gemini's research director and two senior AI engineers had resigned over the past three weeks.
Morgan Stanley analyst Brian Nowak wrote in a client note that the departures « raise structural questions about Gemini's roadmap. » The company has lost at least six senior researchers to OpenAI and Anthropic since the start of the year, a critical concern for investors as the talent war in AI intensifies.
An Alphabet spokesperson described the exits as « natural turnover » and stressed that the AI team has grown 40% in the past year. CEO Sundar Pichai is expected to address employees on Tuesday. Megacap tech weighed on the broader market: the S&P 500 fell 1.2% and the Nasdaq dropped 1.8%.
Read next
Apollo's $26 billion private credit fund caps withdrawals at 5% after redemption requests jump to 17%
Apollo Global Management capped quarterly withdrawals at 5% from its $26 billion private credit fund after redemption requests reached 17% in the second quarter, the first concrete sign of liquidity stress in shadow banking.
Operator of troubled Callide power station sued for more than A$1 billion
China hits dozens of US companies with export controls and procurement bans
Chevron, Microsoft sign 20-year deal to power massive AI data center with natural gas
Zhipu AI market cap tops HK$1 trillion as GLM-5.2 launch sends shares soaring
