Alphabet shares slide about 7% on Monday as AI talent exits and rising spend rattle investors

Alphabet (GOOG, GOOGL) shares fell as investors weighed a fresh wave of high-profile departures from Google’s AI ranks, intensifying competition in the sector. The stock was down by approximately 7 percent by the closing bell on Monday, its biggest one-day drop in about a year. Investors are also focusing on whether heavy AI investment will pay off as models become cheaper and more interchangeable.