Alphabet — Key Risks
Antitrust Cases Could Force Fundamental Changes to Google's Core Business
Alphabet is facing multiple active government antitrust lawsuits in the US. In August 2024, a federal court ruled against Google in a Search monopoly case, and a final judgment in December 2025 requires Google to share search data with competitors and restricts how it distributes its services. Separately, in April 2025, a judge ruled that Google's publisher advertising tools unfairly excluded rivals — the DOJ's proposed remedy includes structural changes (potentially meaning forced sales of business units). These are not theoretical risks; rulings are already in, and the remedies could permanently alter how Google operates and earns money.
AI Is Reshaping Search, and Google Could Lose Its Dominant Position
More than 70% of Alphabet's total revenues come from online advertising, most of which flows through Google Search. AI-powered competitors — including new search interfaces and AI assistants — are changing how people find information online, threatening the query volume that underpins this revenue. Google is investing heavily in its own AI capabilities, but the filing acknowledges there is no assurance these efforts will be competitive enough to offset the shift.
Massive Infrastructure Spending Could Weigh on Margins Without Guaranteed Returns
Alphabet is committing to enormous, long-duration contracts for data center capacity, energy, and specialized AI chips (including its custom TPUs, processors designed for AI workloads). If demand does not materialize as expected, the company could be stuck with excess capacity it cannot easily redeploy. The filing also warns that some infrastructure assets (like servers) may need to be written down sooner than expected if technology changes faster than anticipated.
Supply Chain Bottlenecks Could Limit AI Growth
Key components for AI infrastructure — particularly AI accelerators like GPUs and custom chips — are available from only a small number of suppliers. Power, land, and water availability are also increasingly constrained globally. If Alphabet cannot secure enough supply, it risks falling behind competitors in AI model training and in serving Google Cloud customers, directly limiting revenue growth in one of its fastest-growing segments.
A Global Patchwork of Regulations Is Growing More Costly to Navigate
Governments worldwide are rapidly passing new laws covering AI, data privacy, content moderation, and competition. The EU's AI Act is already in force, US states passed over 1,000 AI-related bills in 2025 alone, and data protection authorities in multiple jurisdictions are actively scrutinizing how Alphabet collects and uses data. Complying with overlapping and sometimes contradictory rules across countries is expensive, can force product changes, and carries the risk of significant fines if Alphabet falls short.
International Operations Represent Half of Revenue but Come With Rising Geopolitical Risk
Approximately 52% of Alphabet's 2025 revenues came from outside the US. The company faces currency fluctuation, trade restrictions, sanctions, and the risk of government-imposed service blockages in certain markets. Ongoing conflicts in the Middle East and Ukraine, along with evolving US foreign policy, add further uncertainty to international operations that represent a critical piece of the overall business.
Founders' Voting Control Means Other Shareholders Have Limited Influence
Larry Page and Sergey Brin together control approximately 52.7% of voting power through their Class B shares (which carry 10 votes each). Regular investors holding Class A shares get one vote, and Class C shareholders get none. This means that even if the majority of shares by count opposed a major strategic decision, the founders could still determine the outcome.