By Will Healy
Publication Date: 2025-12-14 21:15:00
Both of these top tech companies have established leadership roles in the AI industry.
Both Microsoft (MSFT 1.04%) and Alphabet (GOOGL 1.03%) (GOOG 1.01%) continue to grow as they solidify their positions in the artificial intelligence (AI) industry. Amid a recent surge, Alphabet’s market cap has reached almost $3.9 trillion, while Microsoft’s has pulled back slightly to $3.6 trillion.
What’s unusual is that the Google parent was substantially smaller than the software giant until recently, when Alphabet pulled ahead. Considering that surge by Alphabet, is it the better investment among multitrillion-dollar companies in the AI realm, or should investors stick with Microsoft?
The case for Microsoft
Microsoft has long been a leading cloud company, but it stood out in the AI race because early on it took what is now a 27% ownership stake in OpenAI. Thus, upon the release of GPT-4, that partnership appeared to put Microsoft stock in a strong position as the frenzy around generative AI…
