Concerns over key AI figures leaving Google have also weighed on Alphabet’s shares

Google parent Alphabet’s stock has fallen 15% since soaring over 150% in May, erasing $692 billion in market value.

The decline stems from heavy AI infrastructure spending—including a $25 billion bond offering—and delays surrounding its Gemini 3.5 Pro model.

Concerns over key AI figures leaving have also weighed on shares. Jeff Dean exited to start his own venture, and former Google DeepMind CEO Demis Hassabis stepped down to become chairman.

Despite the recent decline, Alphabet remains up about 65% over the last 12 months.

Investors are now focused on whether Alphabet’s rising capital expenditures could squeeze its free cash flow, potentially pushing it into negative territory as the company accelerates its AI investments.