Alphabet, the parent company of Google, has reached a $4 trillion valuation, overtaking Apple to become the second-most valuable company in the world. This milestone places Alphabet in the top tier of global tech giants, alongside Nvidia and Microsoft. The valuation surge follows the news that Apple has chosen Google’s Gemini AI to power a major update to Siri. This deal is a strong endorsement of Google’s AI capabilities.
Apple’s decision to use Gemini came after a thorough evaluation of the market. The company stated that Google’s technology offered the most capable foundation for their AI needs. This partnership will bring Google’s AI to millions of iPhone users, significantly increasing its reach. The deal is a major victory for Google and a testament to its technological leadership.
Alphabet’s stock has soared 65% in 2025, outperforming the other “Magnificent Seven” stocks. This growth is driven by investor confidence in Google’s ability to deliver successful AI products. While rivals like OpenAI have faced setbacks, Google has consistently released popular tools like the Nano Banana image generator and updates to Gemini. These successes have helped to dispel fears of a market bubble.
Google’s cloud business is also a major growth engine. The unit reported a 34% increase in revenue in the third quarter and has a backlog of $155 billion in contracts. This success attracted an investment from Berkshire Hathaway. The rental of Google’s custom AI chips to external customers has been a key factor in this growth, driving revenue and establishing the cloud unit as a leader in the market.
Despite these financial wins, Google is facing significant legal hurdles. The company is currently defending itself in two antitrust lawsuits in the US. A recent ruling against breaking up the company was a relief, but a trial concerning the online ad market is still underway. This could result in forced divestitures, although Google’s advertising business remains a stable source of income.