Home / Business and Economy / Alphabet Surges Past Apple on AI Deal
Alphabet Surges Past Apple on AI Deal
12 Jan
Summary
- Alphabet reached $4tn valuation, surpassing Apple.
- Apple selected Google's Gemini AI for Siri's overhaul.
- Alphabet's stock surged 65% in 2025, outperforming peers.
Alphabet has achieved a significant financial milestone, reaching a $4tn valuation and surpassing Apple to become the second-most valuable company globally. This surge follows Apple's announcement that it has chosen Google's Gemini AI model to power a substantial overhaul of its Siri digital assistant. This strategic partnership underscores the growing influence of artificial intelligence in the tech industry and marks a pivotal moment for Alphabet's market standing.
The company's stock performance has been extraordinary, with a 65% increase in 2025, outperforming other major tech stocks. Alphabet has successfully addressed investor concerns regarding its AI capabilities through high-profile product launches like the latest Gemini model and the Nano Banana image generator. Furthermore, its cloud division has emerged as a significant growth engine, attracting investment and demonstrating substantial revenue increases, partly due to renting out its AI chips.
Despite facing antitrust lawsuits, including one concerning its online ad market dominance, Alphabet has navigated these challenges to solidify its position in the AI boom. The company's advertising business, driven by Search and YouTube, remains a steady revenue generator. This combination of AI innovation, robust cloud growth, and a resilient advertising core has cemented Alphabet's impressive financial achievements.
