The financial landscape of the technology sector shifted dramatically on Monday as Alphabet, Google’s parent company, reached a $4 trillion valuation. This achievement allowed it to overtake Apple and secure the number two spot on the list of the world’s most valuable companies. Joining the ranks of Nvidia and Microsoft, Alphabet’s ascent highlights the immense value investors are placing on artificial intelligence. The market’s rally was triggered by the news that Apple has selected Google’s Gemini AI model to power the new version of Siri, a move that validates Google’s technological leadership in a highly competitive field.
This collaboration between the two tech behemoths is significant. Apple, known for its walled-garden approach, admitted in a statement that Google’s technology provided the “most capable foundation” for its AI ambitions after a thorough evaluation. While the monetary terms of the deal were not disclosed, the implications are clear: Google’s AI infrastructure is superior to the competition. This integration will see Gemini powering the digital assistant on millions of devices, providing Google with an unparalleled platform to showcase its AI capabilities to a global audience.
Alphabet’s stock has been on a tear, rising 65% in 2025 and outperforming the other “Magnificent Seven” stocks. This surge is partly due to the faltering of rivals; OpenAI’s GPT-5 launch was met with a lukewarm response, allowing Google to capitalize on the opportunity. Through a series of successful launches, including the Nano Banana image generator and robust updates to Gemini, Google has proven it can deliver high-quality consumer AI products. This success has eased concerns about a market bubble, suggesting that the AI boom is grounded in tangible product advancements and strategic partnerships.
Beyond the consumer space, Google is making waves in enterprise infrastructure. Its cloud unit has grown into a formidable business, drawing a rare investment from Berkshire Hathaway. With a 34% jump in third-quarter revenue and a $155 billion backlog, Google Cloud is firing on all cylinders. A key strategy has been the rental of proprietary AI chips to external clients. These chips, originally designed for Google’s internal workloads, are now powering the AI ambitions of other companies, driving revenue and cementing Google’s role as a foundational player in the AI economy.
The company’s growth comes amidst a backdrop of intense regulatory scrutiny. Google is currently defending itself in two landmark antitrust cases. While a judge recently ruled against breaking up the company following a search monopoly verdict—preserving the unity of Android and Chrome—legal risks persist. A separate trial concerning the online ad market is currently underway to determine remedies for illegal monopolization. This could result in the forced sale of parts of Google’s ad business, though the division continues to generate steady revenue and maintain its market dominance for the time being.