Wall Street's attitude towards OpenAI is undergoing a dramatic reversal. Once favored by the market, OpenAI-related stocks are now facing sell-offs, with companies like Microsoft and Oracle seeing significant declines in their stock prices, while Alphabet, Google's parent company and a competitor to OpenAI, has emerged as the biggest winner with strong financial returns from its AI business, with its stock price soaring about 36% since last October.
The shift in market logic is vividly reflected in the words of Wall Street analysts. Paul Meeks, head of technology research at Freedom Capital Markets, stated:
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&#34;The market is forming a narrative that favors Google over OpenAI. At this time last year, every time OpenAI announced a partnership with a company, it was met with applause. But by the end of 2025, people will start saying, 'Oh my god, my revenue backlog or AI infrastructure spending has too much coming from OpenAI.'&#34;
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This sentiment shift is clearly reflected in stock prices. Oracle's stock has plummeted about 49% since last October, with its over $500 billion in contract backlog heavily reliant on OpenAI. Microsoft, which holds a 27% stake in OpenAI and considers it an important client, has seen its stock price drop over 20% during the same period. Meanwhile, Alphabet's stock has risen about 36% during this time.
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According to a previous article from Wall Street, a report from Deutsche Bank reveals a harsher reality: the AI investment frenzy has entered a &#34;great cleansing&#34; phase, and the prosperity of the S&amp;P 500 index may be largely supported by Google alone. This intense reshuffling within tech stocks is redefining the winners and losers of the AI era.
<h2>Market Narrative Reversal: From Fawning to Questioning OpenAI's Dependence</h2>
Investor concerns about OpenAI stem from its financial sustainability. Despite signing a series of multi-billion dollar deals, the company is still operating at a loss, raising doubts in the market about its ability to fulfill commitments, which in turn weighs down its closely related tech giants.
Dan Morgan, portfolio manager at Synovus Trust, pointed out:
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&#34;OpenAI's deals with Microsoft and Oracle are highly dependent on its future financing capabilities. I think that's why the market favors Alphabet more.&#34;
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This shift is particularly evident in Microsoft. Although Microsoft has taken a relatively moderate stance on capital expenditures—indicating that spending in the third fiscal quarter will decline from a record $37.5 billion during the October to December period—its stock still suffered a heavy blow last week, partly due to increasing market concerns about its reliance on OpenAI
LOGO ETF portfolio manager Eric Clark bluntly summarized:
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&#34; If you are a software company and have ties to OpenAI, your appeal to investors will be halved. Right now, Google has the upper hand.&#34;
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<h2>Google Wins Wall Street Confidence with Comprehensive AI Returns</h2>
Alphabet has generated returns across the company through AI investments, earning recognition from Wall Street. This marks a complete turnaround for the company, which was considered severely behind in the AI race and faced stock price penalties a year ago.
During the earnings call on February 4, Alphabet executives displayed a more confident demeanor. This was the company's first earnings call following the release of the Gemini 3 model. CEO Sundar Pichai stated:
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&#34;Overall, we see that AI investments and infrastructure are driving revenue and growth across the company.&#34;
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Specific data supports this confidence. Pichai revealed that as of the end of the December quarter, the monthly active users of the Google Gemini app exceeded 750 million, up from 650 million in the previous quarter. Although still trailing behind ChatGPT—OpenAI CEO Sam Altman stated in October that its weekly active users had surpassed 800 million, user engagement has significantly increased since the launch of Gemini 3.
On the enterprise side, Gemini's performance is equally impressive. The enterprise version of Gemini has reached 8 million paid licenses. More importantly, Google Cloud revenue soared 48% in the December quarter, far exceeding Wall Street expectations.
It is this comprehensive financial return that has emboldened Alphabet to announce that capital expenditures could double to between $175 billion and $185 billion by 2026. Although this &#34;stunning&#34; figure initially caused the stock price to drop by 6% in after-hours trading, the strong performance of the cloud business and overall AI-driven growth quickly restored investor confidence, and the stock price ultimately stabilized.
<h2>Deutsche Bank Report: A &#34;Cleansing&#34; of Tech Stocks Has Begun</h2>
The calm on the surface of the market conceals intense turbulence within tech stocks. On February 4, Jim Reid, head of global macro and thematic research at Deutsche Bank, and his team released a report titled &#34;Tech Self-Consumption,&#34; revealing the harsh realities beneath the AI investment frenzy.
The report pointed out that although the S&amp;P 500 index remains close to historical highs, this is largely due to a rotation of funds into defensive sectors and the exceptional performance of certain tech giants. Under the &#34;true winners and losers landscape,&#34; many assets related to AI, software, cryptocurrency, and private equity exposure have experienced &#34;very brutal declines.&#34;
The report emphasized that the market sentiment has undergone a decisive shift in recent months:
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&#34;The market has clearly shifted from the mindset of 'every tech stock is a winner' to a harsher reality: a true landscape of winners and losers.&#34;
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<h2>Google's &#34;One-Horse Rescue&#34;: One Company Supports Index Prosperity</h2>
Deutsche Bank's research reveals a more astonishing fact: the stability of the tech stock index is entirely a statistical &#34;mirage,&#34; actually supported by Google alone.
In the past three months, Alphabet's stock price has risen nearly 25%; if extended to the past six months, the increase reaches an astonishing 75%. This 75% increase translates to approximately $1.7 trillion in market value growth. In comparison, Deutsche Bank points out that most companies in the chart, excluding the &#34;seven giants,&#34; have market values primarily concentrated in the tens of billions, with only a few reaching hundreds of billions.
Jim Reid bluntly stated: &#34;Alphabet's earnings over the past six months have alone offset a significant portion of the losses from other companies in this group.&#34; This largely explains why, despite a massive sell-off of tech stocks, the S&amp;P 500 index has remained near historical highs.
Alphabet's deep cash reserves benefit from significant agreements made in recent months with tech companies like Meta and Apple, supporting their products and infrastructure. Since the beginning of last year, Alphabet has risen from a laggard to a leader among the &#34;seven giants,&#34; currently tied with Nvidia and Apple as the only companies with a market value exceeding $4 trillion.
Deutsche Bank reiterated its long-term view: the true long-term beneficiaries will be those companies that can deploy genuinely effective AI tools. These tools must ultimately become cheap, scalable, and capable of delivering meaningful productivity gains. In reality, this may correspond to large organizations with data-intensive, rules-driven workflows—where AI is more likely to &#34;significantly change output efficiency.&#34;

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Wall Street's attitude towards OpenAI has shifted from adoration to concern, influenced by its losses and doubts about its performance capabilities, leading to a sharp decline in the stock prices of deeply tied Microsoft and Oracle. Meanwhile, Google stands out with the financial returns driven by Gemini 3 and a 48% revenue growth in its cloud business, supporting an index boom with a market capitalization of $4 trillion, potentially becoming the winner in the second half of the AI competition

- Wall Street's attitude towards OpenAI has dramatically shifted, with OpenAI-related stocks experiencing sell-offs while Alphabet's shares soared by approximately 36%.  
- Analysts indicate a narrative favoring Alphabet over OpenAI, as concerns grow over OpenAI's financial sustainability despite its previous large contracts.  
- Deutsche Bank's report highlights a "purge" in tech stocks, with Alphabet emerging as a key performer supporting the S&P 500 index amidst upheaval in the sector.

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"Once associated with OpenAI, it loses its appeal!" Wall Street begins to "liquidate" OpenAI concept stocks, with Google surging 36% to become the winner