The artificial intelligence (AI) race is accelerating as companies vie to capture a larger share of the potential trillion-dollar market. Alphabet (GOOGL) and OpenAI (PC:OPAIQ) represent two powerhouse players in the AI landscape. Alphabet, with its vast ecosystem, trades publicly, while OpenAI, valued at over $150 billion privately, remains off exchanges for now. Yet, investors often pit GOOGL’s strong ecosystem to OpenAI’s innovation, weighing GOOGL shares against indirect exposure via partners like Microsoft (MSFT).
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Google integrates its Gemini 2.0 models (launched in 2025) across search, cloud, and custom TPUs, drawing on billions of users for data superiority. OpenAI, on the other hand, focuses on frontier models like its GPT series and ChatGPT subscriptions, prioritizing research and ethics.
Let’s examine analysts’ views on the AI race leader.
Jefferies Remains Bullish on OpenAI’s Momentum
Jefferies is bullish on OpenAI’s newly-launched GPT-5.2 model, which exceeded expectations by surpassing GPT-5.1 and narrowing the gap with Google’s Gemini. The research firm noted that strong performance in enterprise tasks and coding, plus a top-tier CRO hire, bolsters confidence in OpenAI’s FY26 enterprise strategy. The firm highlights rapid AI model improvements driving faster adoption than past tech shifts, creating upside for Microsoft (MSFT), which is a 27% OpenAI stakeholder, Oracle (ORCL), and CoreWeave (CRWV) due to their deep ties.
Importantly, OpenAI is reportedly planning for an initial public offering (IPO) in late 2026 or 2027 and has shifted to a for-profit structure. Google faces a real challenge once OpenAI lists shares, broadening retail access.
Evercore: Google Search Solidifies AI Lead
Evercore ISI analyst Mark Mahaney reiterated his Buy rating on GOOGL stock with a $325 price target, implying 4% upside potential. Despite OpenAI’s progress, he noted that Google’s core search business Google’s search share climbed to 76% in November from 70% in August, per their survey, with no drop in commercial queries. He noted that Google’s AI integrations improved the overall search experience, boosting usage volumes and signaling strong revenue potential. Notably, Google’s Gemini 3.0 model, integrated into search in November, recently outperformed rivals like GPT-5.
GOOGL shares are up over 65% in 2025, fueled by AI momentum and custom chip development. Benchmarks show Gemini edging out competitors in key areas, though OpenAI’s innovations keep pressure on.
Which Is the Best Listed AI Player?
We used the TipRanks Stock Comparison Tool to determine which is the best listed AI player. Currently, Microsoft, Meta (META), GOOGL, Micron (MU), Amazon (AMZN), and Nvidia (NVDA) have earned analysts’ Strong Buy consensus rating, with NVDA stock offering the highest upside potential over the next twelve months.
