Google-Alphabet rises on Gemini 3: AI race heats up; OpenAI feels pressure this week

TOI GLOBAL DESK | TOI GLOBAL | Nov 25, 2025, 20:54 IST

Google’s Gemini 3 model has earned strong early praise and boosted the company’s stock performance, putting pressure on OpenAI and shifting expectations in the AI sector. Analysts say Google’s momentum could change investment flows across major chip and cloud firms. Tech stocks reacted positively as the wider market regained confidence in the ongoing AI race.

Gemini 3 receives positive feedback

Google’s launch of Gemini 3 has changed the pace of the AI race this month. The model received positive feedback soon after release. Salesforce CEO Marc Benioff said on X that he tried Gemini 3 and is “not going back” to ChatGPT. This public praise added to the excitement surrounding Google’s new work. The market reacted as well. Google’s stock rose nearly 5% on Monday after gaining 8% last week. The company has now recorded a 64% rise this year, making it the top performer among the Magnificent Seven tech firms in 2025. Inside OpenAI, there is clear awareness of this shift. OpenAI CEO Sam Altman said in a note to employees that the company has “some work to do” and admitted that market sentiment could be difficult for a while.

Analysts warn of changes in AI investment

Analysts say Google’s rise could reshape how money moves in the AI world. Ben Reitzes of Melius Research wrote that Google’s growing strength is “the risk to watch.” He said that if Google starts to lead the model race, companies that rely on OpenAI could slow their spending. This includes major chip and cloud players such as Nvidia, AMD, Microsoft, CoreWeave, Oracle, and Broadcom. OpenAI has set huge goals for the next decade and plans more than $1 trillion in AI infrastructure spending. But to achieve that, it needs steady growth in users and enterprise clients. Analysts believe that competition from Google could make that target harder to reach unless OpenAI responds with major upgrades.

Markets react

Google’s strategy is also gaining attention because it uses its own cloud system and custom AI chips. At the same time, the company continues to work with Nvidia and Broadcom. Analysts say this balanced approach helps Google move faster while staying flexible. Other tech stocks also rose as interest in AI grew again. Microsoft, Oracle, Nvidia, and Broadcom all saw gains this week. Some experts had warned of an AI bubble last week, but Wedbush analyst Dan Ives said the “AI arms race” is still strong and expects more growth next year.