It’s hard to believe that some might consider Alphabet (NASDAQ:GOOG | GOOG Price Prediction) to be an underdog in the AI race. Indeed, it wasn’t all too long ago when it was Gemini that was hogging the headlines as it began to nip away at the market share of ChatGPT, as the model hit the ground running when OpenAI kicked off the AI race just over three years ago.
Google’s “Code Red” really did pay off, and the real question is whether the AI titan’s current pace is fast enough to keep up with agile frontier-level AI innovators like Anthropic, which is widely considered the big one of the boldest new leaders in the AI space, especially with its Claude Code and Claude Mythos both making massive splashes.
With the latest $10 billion bet made by Berkshire Hathaway (NYSE:BRK.B) in that last quarter, I think it’s time to give the AI giant a second look while it’s on the retreat again.
AI IPOs are on the way, but let’s not forget about Alphabet
As Dario Amodei’s AI firm goes public, I bet there will be a big line out the door to get a piece of the shares. Until that time comes, though, investors will need to wait a while longer as the firm, which may very well be worth $1 trillion by the time everyday retail gets a shot to buy on the public market.
For now, it’s looking like Google and Gemini aren’t all too far behind, especially after that action-packed I/O 2026 event, which unveiled some incredible new AI applications.
After an $80 billion equity raise to bet on the AI build-out, it’s clear that Alphabet is ready to make another big move forward in AI. And this time, it might have what it takes not only to regain the lead, but perhaps to keep it for quite some time.
Sure, it’s fun and exciting to have new AI IPOs, especially pure-plays. But what if Google was better-built for the AI race all along? What if it’s worth buying over the new wave of frontier-level AI innovators coming down the AI pipeline?
Google has what it takes to regain the AI lead
Maybe it’s Anthropic today, but the script could flip right back into Alphabet’s favor, as we await Gemini 3.5 Pro, which could make big strides just like Gemini 3.5 Flash did. Though Google might be beefier than Anthropic and OpenAI, the company has been able to use its size to its advantage.
It’s got massively deep pockets for one. And, arguably, it should pursue a big equity raise in an effort to stay several steps ahead of its leaner pure-play AI lab rivals, which, I believe, Google can beat. Structurally, Google is a leader, but the big question is whether the economies of scale beat pure, raw pure-play talent.
Given Google’s data advantage and its already profoundly massive Google Cloud Platform (GCP), I’d argue that Google was built to win, and that economies of scale matter in AI now more than ever. As Alphabet spends $190 billion and counting, I think the days of frontier AI model leapfrogging might be numbered, especially as it dominates in every layer of the AI stack.
The bottom line
Moving ahead, the big question will be whether Google can pull the curtain on a model that tops Mythos, which has been a game-changer in the realm of cybersecurity.
Given Google’s acquisition of Wiz, an AI cybersecurity firm, and the sheer momentum behind Gemini, I think it’s just a matter of time before Google retakes the lead. In other words, it might not be an “underdog” for all too long. Google hasn’t been first in this AI race, but it’s definitely shown that it can do incredibly well.
As the cost of AI compute becomes a bigger story as inference takes off, perhaps it’s Google that could act as the frontier-level AI innovator that will still have its swim trunks on when the tides go out, and it’s time for AI innovators to start making money (through ads) and the days of “free lunch” era for tokens come to an end.
Top Gaining Stocks
Top Losing Stocks