Key Stats for Alphabet Stock
- Price change for Alphabet stock in last 6 months: -1%
- $GOOGL Stock Price as of Oct. 21: $335
- 52-Week High: $409
- $GOOGL Stock Price Target: $430
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What Happened?
OpenAI will make its AI models available to developers through Google (GOOGL) Cloud. GPT products are coming to Google Cloud’s model garden and its Antigravity coding tool in the coming weeks.
For Alphabet stock investors, this is a notable shift after years of competition between the two companies.
The move puts OpenAI’s models on all three top cloud providers; less than six months ago, Microsoft lost its exclusive license to OpenAI’s technology.
The day after that ended, Amazon announced plans to host the models, and now Google is getting its turn.
OpenAI said Google Cloud’s long investment in AI has made it a destination for AI workloads, and the two firms also worked together last year.
OpenAI already uses Google’s cloud to run ChatGPT and its API.
Google Cloud has been growing at an enviable rate. Cloud revenue rose 82% in Q2, up from 63% growth in Q1. Amazon grew 37%, and Microsoft grew 42%. All three report quarterly results next week.
The numbers behind that growth are strong:
- Cloud operating income was $8.8 billion, up over 200% year over year.
- Cloud operating margin rose to 35.6% from 20.7%.
- Backlog grew by more than $50 billion from the prior quarter.
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What the Market Is Telling Us About Alphabet Stock
More OpenAI models on Google Cloud could bring in more developers and more spending.
It also shows how crowded the field is, and Alphabet stock now has to compete with OpenAI on its own platform.
Corporate card issuer Ramp says most business AI spending goes to OpenAI and Anthropic. Some companies have built Google’s Gemini models into their systems, but Gemini is not the leader there.
Google announced its next-generation Gemini 4 Argon model in September.
Costs are the other issue as Alphabet raised its 2026 capital spending guidance to $195 billion to $205 billion.
Free cash flow was negative $5.9 billion in Q2, and management also said it will use more third-party capacity, which will put some pressure on cloud margins.
So Alphabet stock has strong growth, but heavy spending and tough competition.
Next week’s earnings should show whether cloud demand is still accelerating.
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So what is Alphabet stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
