Alphabet Drops 3.97% on AI Safety Concerns, Android Shift

On April 7, 2025, Alphabet's stock experienced a 3.97% drop in pre-market trading.

Alphabet's recent stock decline can be attributed to several factors, including concerns over the potential risks associated with artificial general intelligence (AGI). DeepMind, a subsidiary of Alphabet, released a comprehensive 145-page report on AI safety, warning that AGI could pose an existential threat to humanity by 2030. The report highlights four main risks: misuse, misalignment, mistakes, and structural conflicts. DeepMind's report also criticizes competitors like Anthropic and OpenAI for insufficient investment in safety measures.

Additionally, Alphabet's decision to shift the development of the Android operating system to an internal, closed process has raised concerns about the transparency and openness of the Android ecosystem. This move could potentially reduce the involvement of the developer community and centralize control over the Android ecosystem within Alphabet. The shift towards a more closed development process may also impact the real-time responsiveness of the Android system, potentially benefiting competitors like Huawei's HarmonyOS, which is gaining market share in China.