Sergey Brin , Google co-founder and one of world’s richest individuals, reportedly witnessed $29 billon wiped from his fortune in a single day after shares of parent company Alphabet suffered their steepest decline since the tech giant went public in 2004. Alphabet’s stock plunged more than 12%, falling to about $283.29 from $321.89, after investors reacted negatively to slowing growth in the company’s core search business and mounting spending on artificial intelligence initiatives, according to a report by Billionaires Africa.
The sharp stock-market selloff wiped out more than $500 billion from Alphabet’s market value in less than 24 hours, the report said. Alongside Brin’s losses, fellow Google co-founder Larry Page reportedly lost around $31 billion on paper, pushing their combined wealth decline to nearly $60 billion. Google Cloud was a bright spot, with revenue more than doubling to about $30.7 billion. Alphabet reported quarterly revenue of $127.6 billion on Wednesday, slightly below forecasts. Earnings per share were dragged down by an $8.7 billion loss on equity securities, and net income came to about $26.2 billion. The company reported capital expenditure of approximately $51.4 billion during the quarter, representing around 40% of revenue, as it continues to invest heavily in data centres and AI infrastructure.
The losses remain unrealised, meaning they exist only on paper unless the founders sell their shares. However, the massive decline highlights how closely their fortunes remain tied to Alphabet’s stock performance. Investor concerns centred largely on Google’s search business, which remains Alphabet’s biggest revenue generator. The result intensified concerns that generative AI services could eventually challenge traditional online search, long considered Google’s most important business segment. But that did little to ease worries about search and cash flow. Regulation added to the pressure. New European restrictions on how Microsoft, Amazon and Google handle certain sensitive data have weighed on sentiment. Alphabet’s aggressive investment in artificial intelligence also weighed on sentiment. The company has also indicated that spending is expected to increase significantly next year, raising concerns among investors about profitability and cash flow despite growing demand for AI services.