WSJ What's News – "What AI Bubble? Google's Stock Is Soaring"

Date: November 25, 2025
Host: Alex Osaleh
Main Segments: Google/Alphabet’s AI-powered surge, Character AI’s teen ban, Key political and global news

Episode Overview

This episode explores why Google parent Alphabet’s stock continues to soar, bucking the downward trend in other AI-related tech stocks, and examines Character AI’s move to cut off teen users over mental health concerns. Additional major headlines include congressional challenges to auto safety regulations, Ukraine-Russia peace negotiations, and developments in global legal cases.

Google’s Stock Surge Amid AI Turbulence

Guest: Dan Gallagher, WSJ "Heard on the Street" columnist
Timestamps: 01:18–04:25

• Recent Tech Stock Trends (01:18–02:20)

  • Tech companies benefiting from the AI boom—namely Microsoft, Oracle, Nvidia, and Meta—have all seen double-digit stock declines since the Nasdaq peak on October 29.
  • But: Alphabet (Google’s parent) stock is up nearly 18% in the same period.

• Why is Google/Alphabet Bucking the Trend? (02:21–03:32)

  • Gallagher credits Google’s versatility and self-reliance in AI, noting its:
    • Proprietary AI models (unlike Microsoft, which heavily relies on OpenAI)
    • In-house chip design, similar to Nvidia
    • Control of its entire technical stack, from silicon to cloud networks to software
  • Quote:

    "Google just has a lot of things going in its favor right now... They’re really the only company that has what you might call a vertically integrated model here... Having their own AI, their own cloud network, and even their own silicon kind of makes them a very unique business model in AI right now." (Dan Gallagher, 02:46–03:32)

• Vertical Integration & Google Gemini 3 (03:33–04:21)

  • Google’s recently launched Gemini 3 AI, trained on their own infrastructure, is reportedly outperforming ChatGPT in benchmarks.
  • Gallagher points out Google’s reach:

    "Almost anytime you do a Google search, you’re probably going to get some AI results fed to you through Gemini. There’s lots of ways Google can kind of push its AI in front of people, which gives it a strong advantage..." (Dan Gallagher, 03:50–04:20)

  • Gemini 3’s integration in search offers a distribution edge over rivals like OpenAI.

• Market Impact (04:27–04:41)

  • Alphabet stock rose another 1.5%, nearing a $4 trillion valuation ($3.9 trillion at close).
  • Major U.S. indexes also posted gains: Dow up 1.4%, S&P 500 up 0.9%, Nasdaq up 0.7%.

Character AI Cuts Off Teen Users over Mental Health Concerns

Guest: Georgia Wells, WSJ tech reporter
Timestamps: 06:04–09:15

• Background: Why the Teen Ban? (06:27–07:08)

  • Character AI, a popular chatbot provider with 20 million monthly users, has banned users under 18 after observing that teen usage led to problematic, often guideline-evading conversations.
  • Developed a separate product for teens, but long chats with bots proved difficult to monitor.
  • Quote:

    "Executives observed that their chatbots in long conversations are less likely to adhere to safety guidelines... by mid-September company leaders just came to the decision that they were going to cut off teenagers." (Georgia Wells, 06:34–07:07)

• Catalysts for the Decision (07:13–07:29)

  • Facing intense scrutiny from parents, regulators, and mental health professionals about the technology’s impact.
  • Reports and lawsuits linked to tragic teen suicides following chatbot use.

• Teen Reactions (07:35–07:53)

  • Teens are grieving the loss of their chatbot companions, treating the policy as a “breakup.”

    "Many of them have become so invested with these characters that the idea of losing them is just, it’s really, really upsetting for a lot of the teens I’ve spoken to." (Georgia Wells, 07:38–07:54)

• Mental Health Expert Viewpoint (07:58–08:16)

  • Experts interpret the intense reaction as a troubling sign of tech dependency.
  • Quote:

    "To put the tech aside is one of the biggest big questions they have about ways this technology could be problematic..." (Georgia Wells, 08:08–08:16)

• Business Impact & Industry Implications (08:23–09:15)

  • Character AI predicts future teen features may rely on less conversational, more “video and audio” AI to reduce risk.
  • The company’s outright teen ban is unusual in the industry, but Wells expects other companies will face similar ethical and business dilemmas.

Additional Key Headlines (00:33–09:25; selected)

U.S. Auto Safety Rules (00:33–01:18)

• Senate Republicans to challenge safety features like automatic braking and child seat alarms—seen as costly and ineffective by critics, lifesaving by advocates.

Ukraine-Russia Peace Deal Talks (04:42–05:35)

• Diplomatic negotiations ongoing: Ukraine ready to sign U.S.-brokered deal ending the war, pending high-level talks and unresolved issues (land cessions, NATO status).

Lawmaker FBI Interviews & Louvre Heist (09:25–09:55)

• FBI requests interviews with Democratic lawmakers seen in a controversial military video.
• French authorities capture four linked to the Louvre jewel theft; one alleged fugitive remains.

Memorable Quotes

• Dan Gallagher (on Google’s AI model):

  “If a company like OpenAI struggles, that has major implications for Microsoft and Nvidia and these other companies. But OpenAI struggling is actually good for Google.” (03:10–03:21)

• Georgia Wells (on teen reactions):

  “Teens are sad. They’re really sad. So I spoke with a lot of teenagers this week and... a lot of them view this as almost a breakup.” (07:36–07:44)

Timeline of Key Segments

• 00:33: Top news headlines incl. auto safety rules
• 02:20: Tech stocks—Alphabet’s surprising performance
• 02:46: Dan Gallagher on Google’s unique AI strategy
• 03:50: Gemini 3 launch and AI benchmarks
• 04:27: Alphabet’s market value and broad financial news
• 06:04: Character AI bans teens—Georgia Wells explains
• 07:35: Teen reactions and expert concerns
• 08:52: Discussion: Will other chatbot companies follow suit?
• 09:25: FBI interviews lawmakers, Louvre heist update

Tone & Style

The episode is fast-paced, fact-dense, and maintains WSJ’s signature focus on financial insight, business implications, and public policy analysis, while also humanizing tech news through interviews and on-the-ground reporting.

For listeners:
This episode provides a nuanced snapshot of why Alphabet is storming ahead in AI, the challenges and ethics facing AI companion apps, and the broader business, tech, and political news shaping markets this week.