Updated Aug 28, 2026 – 4.27am, first published at 4.22am25 mins ago – 4.27AMAlphabet has lost $US700b value since MayBloombergFor much of the last year, Alphabet has been the Big Tech stock to beat as investors bet that it was the most-likely winner from the artificial intelligence boom.Alphabet shares hit an all-time high on May 13 after soaring more than 150 per cent in the previous 12 months, putting them among the 25 best performers in the S&P 500 Index over that stretch and far outpacing the other Magnificent Seven technology giants.But the momentum has reversed since then due to questions about a brain drain at Google’s parent and fears that the company is losing its edge in AI.The stock is down roughly 15 per cent from its peak, erasing more than $US700 billion in market value and making it the biggest point drag on the S&P 500 in that span.At the crux of the selloff is Alphabet’s suddenly shaky standing in the AI race, with its heavy spending on building out the infrastructure to develop the technology and the delayed release of its new Gemini AI model weighing on investor sentiment.Shares were lower by less than 1 per cent in early trading Thursday.