Alphabet, the parent company of Google, has joined the $4 trillion market capitalization club, becoming the fourth company to reach this milestone alongside Nvidia, Microsoft, and Apple. Shares rose roughly 1% after Apple announced it would rely on Google’s Gemini models and cloud infrastructure to power future AI features, including upgrades to Siri. The multi-year partnership will also support Apple’s next generation of foundation models.
AI-Driven Growth
The milestone reflects Alphabet’s strong performance in 2025, during which its shares surged 65%, the company’s sharpest rally since 2009. Analysts attribute the rise to Alphabet’s strategic positioning in artificial intelligence, including the launch of Gemini 3, a next-generation AI assistant, and the unveiling of Ironwood, the seventh generation of Google’s custom tensor processing units (TPUs). Ironwood is positioned as an alternative to Nvidia’s offerings, strengthening Alphabet’s AI infrastructure.
Despite competition from OpenAI’s ChatGPT and emerging services like Sora, Alphabet has expanded its AI footprint across consumer and enterprise applications. The Gemini models now underpin both internal Google initiatives and external partnerships such as Apple’s, highlighting Alphabet’s role as a leading provider of AI foundation models and cloud infrastructure. The company’s investments in AI have been complemented by regulatory navigation, strong Google Cloud adoption, and integrations that leverage its broad data and infrastructure assets. Citi analysts noted that 70% of Google Cloud customers now use its AI products, underscoring growing enterprise demand.
Market and Analyst Perspective
Analyst Deepak Mathivanan highlighted the advantages of Alphabet’s Gemini-powered assistant app over competitors, citing the company’s decade-long investments and “grounding” assets as key differentiators. Alphabet’s infrastructure, chip technology, and AI models have created durable competitive moats, according to market analysts. Following the achievement, Citi named Google a top internet pick for 2026, noting its strong positioning in AI-enabled cloud services and consumer applications.
Alphabet’s entry into the $4 trillion club underscores the commercial value of AI-driven innovation. The company’s Gemini AI models, custom TPUs, and growing enterprise adoption illustrate a multi-layered strategy combining infrastructure, software, and consumer engagement. The partnership with Apple further expands Gemini’s influence, enabling next-generation Siri upgrades and reinforcing Alphabet’s role as a foundational AI provider. This momentum aligns with other initiatives such as Google’s AI shopping tools, agentic commerce efforts, and Gemini integration across Gmail, highlighting how the company is leveraging AI to maintain market leadership.
