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GOOGL stock gained attention after Google launched Gemini 4 Carbon, its latest artificial intelligence model, on Oct. 28. The announcement coincided with reports that OpenAI plans to purchase Google’s custom AI chips.
Meanwhile, Needham maintained its Buy rating and $450 price target on Alphabet shares. The developments highlight Google’s expanding AI business and growing infrastructure investments.
Google unveils Gemini 4 Carbon with leading benchmark scores
According to Google’s Wednesday announcement, Gemini 4 Carbon scored 59 on the Artificial Intelligence Index. That placed it ahead of Claude Opus 5.5 at 58 and GPT-6 Astra at 57. Google said the model targets cybersecurity work and complex engineering tasks that may take several days.
The company reported an 88.2% score for vulnerability detection on SEC-bench Pro and 54.8% on ExploitGym. Carbon also scored 71.0% on the CWE-bench, which measures its ability to patch software weaknesses. Google said the model generated secure code at more than twice the success rate of its previous Argon model.
Google is initially offering Carbon to selected cybersecurity defenders through its Fairwind Program. Wider access has no announced date, and introductory prices start at $2 per million input tokens. Output tokens cost $10 per million initially, with both standard rates scheduled to double after the introductory period.
Meanwhile, Google’s enterprise AI strategy has previously drawn attention from analysts tracking Alphabet’s cloud business.
OpenAI reportedly plans to purchase Google’s TPU chips
Amid Google’s expanding AI business, reports have also emerged that OpenAI plans to purchase its custom Tensor Processing Units. According to reports, the proposed purchase would give OpenAI direct access to Google’s AI processors.
However, neither company has confirmed a purchase agreement, and financial terms remain undisclosed.
OpenAI has relied heavily on Nvidia processors to train and operate its AI models. However, the company has also explored other suppliers as computing demand continues to grow. Google developed TPUs for its own systems before expanding access to outside customers, including companies building rival AI products.
According to reports, OpenAI began renting Google’s AI chips in 2025 as part of its computing expansion. Oracle has also announced plans to offer Google TPUs through its cloud infrastructure.
Meanwhile, recent coverage of Nvidia’s custom-chip competition examined Google’s efforts to expand TPU adoption beyond its own services. The reported OpenAI purchase could provide Alphabet with another customer for its AI processors if the agreement proceeds.
Needham Reiterates Buy Rating With $450 GOOGL Stock Target
Needham analyst Laura Martin reiterated a Buy rating on Alphabet on October 27 and maintained her $450 price target. Based on the $316.80 reference price, that target represents approximately 42% upside. However, the forecast remains an analyst estimate rather than a guaranteed share price, and Alphabet still faces heavy AI spending.
Martin wondered about Alphabet’s future strategy, as the company believed Waymo would still need to invest in hardware development, but also sees a need to invest in AI. She estimated Waymo’s vehicle spending could reach approximately $4 billion by the end of 2028. The estimate excludes the self-driving business’s operating losses, which are also part of the overall cost of expansion.
At Waymo’s estimated $100 billion valuation, Martin called it “too small to be anything but a distraction. Needham favours transferring vehicle costs to a third party while keeping access to Waymo’s operating data. For GOOGL stock, investors will also assess whether cloud and AI investments translate into earnings growth.
This article is for informational purposes only and does not constitute financial advice. Stock investments involve market volatility and potential losses. Readers should conduct independent research before making investment decisions.
