Alphabet, the parent company of Google, has officially crossed the $4 trillion valuation mark, surpassing Apple to become the second-most valuable company globally. This achievement puts Alphabet in an exclusive club with Nvidia and Microsoft. The market’s reaction was driven by the announcement that Apple has selected Google’s Gemini AI to power the next generation of Siri. This partnership is a significant validation of Google’s AI technology.
Apple stated that they chose Google after a careful evaluation, determining that its technology provided the most capable foundation for their needs. This deal will see Google’s AI integrated into millions of devices, significantly expanding its user base. The partnership is a major win for Google and a sign of its leadership in the AI space.
Alphabet’s stock has jumped 65% in 2025, outperforming its peers in the “Magnificent Seven.” This rally is a result of investor enthusiasm for Google’s AI products. While competitors like OpenAI have stumbled with recent releases, Google has consistently delivered hits. The Nano Banana image generator and updates to Gemini have been well-received, driving confidence in the company’s future.
Google’s cloud division is also performing well, with revenue up 34% in the third quarter and a sales backlog of $155 billion. This growth has attracted investment from Berkshire Hathaway. The rental of Google’s proprietary AI chips to outside customers has been a key driver of this success, allowing the company to monetize its internal hardware.
However, Google is also facing legal challenges. The company is currently involved in two antitrust lawsuits in the US. A recent ruling against breaking up the company was a positive development, but a trial regarding the online ad market is still ongoing. This could lead to forced divestitures, although Google’s ad business continues to generate significant revenue.
