Alphabet, Google's parent company, achieved a $4 trillion market valuation, positioning it as the world's second most valuable company. This milestone follows increased investor interest in artificial intelligence, a new multi-year partnership with Apple to integrate Google's Gemini AI model, sustained growth in its cloud computing division, and stable performance in its advertising business. The company's valuation increase occurred while it navigates ongoing antitrust litigation.
Market Valuation Milestone
On Monday, Alphabet, the parent company of Google, reached a $4 trillion market valuation. This valuation positions the company as the second-most valuable globally. Alphabet is the fourth entity to achieve the $4 trillion mark, following Nvidia, Microsoft, and Apple. Nvidia later surpassed this milestone, reaching a $5 trillion valuation.
Factors Contributing to Valuation
Strategic AI Partnership with Apple
The increase in Alphabet's share price occurred shortly after Apple announced its selection of Google’s Gemini AI model. This multi-year partnership is intended to enhance Apple's Siri digital assistant and serve as a foundation for Apple Foundation Models, following an evaluation by Apple. The financial details of this agreement have not been publicly disclosed by either company. Following this announcement, Alphabet's shares saw an increase of approximately 1 percent.
Artificial Intelligence Initiatives
Alphabet has introduced several products aligned with its artificial intelligence strategy, including its Gemini AI model and the Nano Banana image generator. Amidst persistent investor interest in AI opportunities, Alphabet's stock has risen approximately 65% in 2025, outperforming some other prominent Wall Street tech stocks. Reports indicated that OpenAI's GPT-5 model did not meet some investor and consumer expectations, providing a broader market context.
Google Cloud Performance
Google Cloud, the company's cloud computing division, has emerged as a significant growth driver. The unit's revenue increased by 34% in the third quarter, and non-recognized sales contracts accumulated to $155 billion. Its expansion has also been supported by offering Google’s proprietary AI chips, previously for internal use, to external customers. Berkshire Hathaway has invested in Google Cloud.
Advertising Business Stability
Google's primary revenue source, its advertising business—powered by Google Search and YouTube—maintained stability despite economic uncertainties and competitive pressures.
Legal Challenges
Alphabet is currently involved in two significant US antitrust lawsuits:
- First Case: In September, a judge ruled against dissolving the company, allowing it to retain control of its Chrome browser and Android mobile operating system.
- Second Case: In April, a judge determined that Google had illegally monopolized the online advertising market. A trial commenced in September to determine remedies for this monopoly, which could involve a judge mandating the divestiture of portions of Google's advertising business to promote competition.