Alphabet hits $4T valuation after Apple picks Gemini for Siri
What's the story
Google's parent company, Alphabet, has hit a major financial milestone by hitting a $4 trillion valuation for the first time. The achievement comes after Apple announced that it would be using Google's Gemini AI model to power its digital assistant Siri. The move has helped Alphabet surpass Apple and become the second-most valuable company in the world, behind NVIDIA.
Financial milestone
Alphabet joins exclusive $4 trillion club
With this achievement, Alphabet has joined an exclusive club of companies that have hit the $4 trillion valuation mark. The other members of this elite group are NVIDIA, Microsoft, and Apple. Apple's decision to use Google's technology for its Foundation Models has had a huge impact on Alphabet's market position. The tech giant has seen its stock surge by some 65% in 2025, outperforming its peers in Wall Street's elite group of stocks, the so-called "Magnificent Seven."
Business growth
Alphabet's cloud unit and ad business thrive
Along with its AI strategy, Alphabet has also transformed its cloud unit into a major growth engine. The revenue from Google Cloud jumped 34% in Q3, with a backlog of non-recognized sales contracts rising to $155 billion. Meanwhile, the company's advertising business driven by Google Search and YouTube has remained largely stable despite economic uncertainty and intense competition.
Legal challenges
Alphabet navigates antitrust suits amid AI boom
Despite its success in the AI space, Alphabet has faced two landmark US antitrust suits. After losing the first case, a judge ruled against breaking up the company, allowing it to retain control of its Chrome browser and Android mobile operating system. In the second case, a judge ruled that Google had illegally monopolized the online ad market last April.