Is It the Best AI Stock to Own Today?

In a striking turn of events, analysts are now arguing that Google may be positioning itself to overtake OpenAI and emerge as the top publicly traded AI stock. The claim is bold, but not made in a vacuum.

Alphabet’s efforts in AI, including enhancements to its Gemini models and tighter integration of AI across its services, have prompted investors and commentators to ask whether Google is pulling ahead in the race to dominate the next era of computing. At the same time, OpenAI continues to make headlines,  for instance, its recent 6-gigawatt chip deal with AMD to expand compute capacity.

This article will examine whether Google is truly delivering a knockout blow to OpenAI, assess the strengths and risks behind the claim, and consider whether Alphabet might indeed be the most compelling AI stock available now.

AI Wars: OpenAI vs Google:

The rivalry between Google and OpenAI has defined much of the artificial intelligence landscape over the past two years. When OpenAI released ChatGPT in late 2022, it reshaped public awareness of generative AI and pushed Google to accelerate its own development roadmap. Within months, Google responded with its Gemini model, later integrating it across Search, YouTube, and Android in a unified strategy that few competitors could match.

Today, both companies are pursuing different paths toward dominance. OpenAI operates as an independent research company supported by Microsoft, while Google’s approach centers on embedding AI directly into its existing platforms and services. This difference in scale gives Google a distinct edge in distribution, data access, and user reach. According to Investopedia, even OpenAI now relies partly on Google Cloud for its computing capacity, highlighting the complex relationship between the two.

Recent reports from Reuters indicate that OpenAI signed a chip supply deal with AMD worth billions, aimed at expanding its training infrastructure and reducing dependence on Microsoft’s Azure servers. Meanwhile, Alphabet has continued building its own AI infrastructure using proprietary Tensor Processing Units and investing heavily in global data centers.

The battle between Google and OpenAI is not only about model performance but also about scale, efficiency, and ecosystem control. Each is advancing rapidly, but Google’s integration advantage may now be tilting the balance.

Alphabet’s AI Arsenal:

Alphabet’s long-term strength in artificial intelligence lies in its ability to build, deploy, and scale AI across nearly every part of its ecosystem. Unlike OpenAI, which relies on partnerships and cloud providers, Google owns its infrastructure from chip design to end-user delivery. The company’s Tensor Processing Units (TPUs) have become a central pillar of its AI strategy, giving it direct control over computing performance and cost. 

In its recent quarterly report, Alphabet revealed record capital expenditures, surpassing $85 billion, much of which is being directed toward expanding AI data centers and compute capacity.

At the research level, Alphabet continues to benefit from DeepMind, the AI lab it acquired in 2014. DeepMind’s work has influenced breakthroughs across multiple domains, from protein folding to advanced reinforcement learning. 

Combined with Google Research and the Gemini team, this collaboration has created a deep bench of technical expertise that few rivals can match.

Alphabet’s reach also provides it with a data advantage. Billions of daily searches, YouTube interactions, and Android device signals allow its models to learn from an unparalleled flow of information. 

These insights are now being embedded in features like Search Overviews, AI-driven YouTube recommendations, and Google Workspace assistants, expanding the commercial impact of its AI investment.

In addition to internal innovation, Alphabet has strategically invested in external ventures such as SSI, a company founded by former OpenAI co-founder Ilya Sutskever, signaling its intent to stay close to emerging breakthroughs.

As TECHi noted, Google’s AI expansion shows how deeply integrated AI has become in its business model. Collectively, these assets form an ecosystem that reinforces itself, making Alphabet one of the most resilient and diversified players in the AI market.

Risks, Pushbacks & Counterarguments:

Despite Alphabet’s growing dominance, the idea that it has “killed” OpenAI remains an exaggeration. OpenAI still holds significant influence in the AI sector, particularly in large language model development and developer adoption. Its GPT-4 and GPT-4o models continue to set benchmarks for performance and accessibility, while its API ecosystem powers a vast number of applications across industries. The company’s brand visibility and direct consumer reach through ChatGPT also remain unmatched.

Alphabet faces its own challenges. Integrating AI across its massive portfolio increases operational complexity, and the costs of scaling compute infrastructure could pressure profit margins. Analysts have warned that Alphabet’s AI spending may outpace short-term revenue gains, creating uncertainty for investors. Regulatory risks also loom large, with antitrust scrutiny in both the United States and Europe potentially affecting how Google can use its AI data and integrate its services.

Another concern is innovation fatigue. As competitors like Anthropic, Meta, and open-source developers push forward, Google risks becoming slower to adapt despite its resources. OpenAI’s smaller size allows it to experiment more freely, potentially leading to breakthroughs that larger corporations might overlook.

Verdict:

Alphabet’s recent progress in artificial intelligence positions it as one of the most comprehensive and well-capitalized players in the field. Its ability to integrate AI into everyday products such as Search, YouTube, and Android gives it a commercial advantage that few competitors can match. 

Combined with its proprietary hardware, research divisions, and massive data infrastructure, Alphabet is steadily transforming from an advertising-led company into a broad technology platform built around AI.

However, declaring OpenAI defeated would be premature. OpenAI remains a leading force in generative AI and continues to influence industry direction through innovation and partnerships. The competition between these two entities is likely to define the next decade of AI progress, rather than ending with a single winner.

For investors, Alphabet offers long-term exposure to the AI economy without the volatility of smaller pure-play startups. As TECHi reported, Alphabet’s ongoing infrastructure spending and product integrations suggest a clear strategic vision aimed at sustainable dominance. 

While risks remain, the company’s scale, resources, and diversified business model make it one of the most attractive AI-related stocks available today.