Alphabet, the parent company of Google, has officially surpassed Apple to become the second-most valuable company in the world, hitting a valuation of $4 trillion on Monday. This historic shift in the market leaderboard places Alphabet among the elite ranks of Nvidia and Microsoft. The surging valuation is a direct response to the announcement that Apple will utilize Google’s Gemini AI to power a significant overhaul of Siri. This deal represents a convergence of the world’s two largest mobile platforms and signals that Google’s AI technology has become the industry benchmark for performance and reliability.
The partnership, while lacking public financial details, is a massive strategic win for Google. Apple’s statement regarding the deal was clear: after evaluating all available options, they determined that Google’s technology provided the most capable foundation for their needs. This decision effectively integrates Google’s advanced AI into the daily lives of iPhone users, vastly expanding the reach of the Gemini model. It serves as a strong rebuttal to critics who claimed Google was losing its innovative edge, proving instead that the company is leading the charge in the practical application of generative AI.
The stock market has responded with overwhelming positivity, driving Alphabet’s shares up 65% in 2025. This growth has outpaced other tech giants in the “Magnificent Seven,” fueled by investor excitement over new AI revenue streams. While OpenAI’s release of GPT-5 failed to meet the lofty expectations of the market, Google has consistently delivered hits. Products like the Nano Banana image editor and continuous improvements to the Gemini model have kept users engaged and investors happy. The fear of a stock market bubble has taken a backseat to the potential for sustained growth driven by these new technologies.
Simultaneously, Google is seeing explosive growth in its cloud computing sector. No longer just a search giant, Google has transformed its cloud unit into a major profit center, evidenced by a 34% revenue increase in the third quarter. The unit has secured a massive $155 billion in future sales contracts and attracted the attention of conservative investors like Warren Buffett. By offering its powerful, self-developed AI chips to outside companies, Google Cloud has differentiated itself from competitors, fueling rapid growth and establishing itself as a critical provider of AI infrastructure.
Despite the celebratory financial news, Google is entangled in serious legal challenges. The company is fighting two major US antitrust lawsuits that threaten to reshape its business structure. Recently, a judge ruled against breaking up the company in the wake of a lost monopoly case, a decision that safeguards the synergy between Android, Chrome, and Search. However, a second trial regarding the illegal monopolization of the online ad market is ongoing. This could lead to mandates forcing Google to divest parts of its ad business, although for now, its advertising revenue remains a steady anchor amidst the turbulence.