Alphabet Inc., the parent company of Google, has reached a valuation of $4 trillion for the first time, surpassing Apple to become the world's second-most valuable company. The spike in share price comes after Apple announced that it had chosen Google's Gemini AI model to power its major overhaul of the digital assistant Siri.
In this significant deal, neither Apple nor Google disclosed how much the agreement was worth, but it is clear that Alphabet's technology has provided a capable foundation for Apple's new initiative. This move marks a remarkable shift in investor sentiment towards the tech giant, with its stock surging by over 65% in 2025.
Alphabet's recent product launches have also bolstered investors' confidence in the company's AI strategy. The launch of the latest version of Google's flagship AI model, Gemini, and the popular Nano Banana image generator and editor, has demonstrated Alphabet's ability to drive growth and innovation in the rapidly evolving field of artificial intelligence.
The tech giant's cloud unit has also been a major growth driver for the company, with revenue jumping 34% in the third quarter. The unit's breakneck pace of growth is largely due to its self-developed AI chips being rented out to outside customers. Meanwhile, Alphabet's dominant advertising business remains steady despite economic uncertainty and intense competition.
However, the company has faced significant challenges in recent times, including two landmark US antitrust suits. In one case, a judge ruled that Google had illegally monopolized the online ad market, paving the way for a trial to determine how to remedy the monopoly. The outcome of this trial remains uncertain, but it highlights the ongoing scrutiny of Alphabet's business practices.
Despite these challenges, Alphabet's valuation milestone marks an exciting time for investors and analysts alike. As tech stocks continue to rise, the growth prospects for AI-driven companies like Alphabet are likely to remain strong, offering new avenues of investment and opportunities for innovation.
In this significant deal, neither Apple nor Google disclosed how much the agreement was worth, but it is clear that Alphabet's technology has provided a capable foundation for Apple's new initiative. This move marks a remarkable shift in investor sentiment towards the tech giant, with its stock surging by over 65% in 2025.
Alphabet's recent product launches have also bolstered investors' confidence in the company's AI strategy. The launch of the latest version of Google's flagship AI model, Gemini, and the popular Nano Banana image generator and editor, has demonstrated Alphabet's ability to drive growth and innovation in the rapidly evolving field of artificial intelligence.
The tech giant's cloud unit has also been a major growth driver for the company, with revenue jumping 34% in the third quarter. The unit's breakneck pace of growth is largely due to its self-developed AI chips being rented out to outside customers. Meanwhile, Alphabet's dominant advertising business remains steady despite economic uncertainty and intense competition.
However, the company has faced significant challenges in recent times, including two landmark US antitrust suits. In one case, a judge ruled that Google had illegally monopolized the online ad market, paving the way for a trial to determine how to remedy the monopoly. The outcome of this trial remains uncertain, but it highlights the ongoing scrutiny of Alphabet's business practices.
Despite these challenges, Alphabet's valuation milestone marks an exciting time for investors and analysts alike. As tech stocks continue to rise, the growth prospects for AI-driven companies like Alphabet are likely to remain strong, offering new avenues of investment and opportunities for innovation.