Google Beats Apple to $4 Trillion Valuation Following AI Deal

In a stunning display of market strength, Google’s parent company Alphabet has surpassed Apple to become the second-most valuable company globally, hitting a $4 trillion valuation on Monday. This milestone makes Alphabet only the fourth company in history to reach such heights, alongside Nvidia and Microsoft. The driving force behind this valuation leap is a newly announced partnership with Apple, which has chosen Google’s Gemini AI to revamp its Siri digital assistant. This deal serves as a major vote of confidence in Google’s AI strategy and has ignited a fresh wave of investor enthusiasm.
The agreement with Apple is a pivotal moment for the industry. By selecting Gemini, Apple has acknowledged that Google’s AI models offer the best foundation for their next-generation features. In a statement, Apple noted that they conducted a careful evaluation before selecting Google, highlighting the superior capabilities of the search giant’s technology. This partnership not only boosts Google’s reputation but also promises to integrate its AI deeply into the iPhone ecosystem, ensuring that Gemini becomes a household name for millions of Apple users.
Reflecting this optimism, Alphabet’s stock has soared 65% in 2025, outshining its peers in the “Magnificent Seven.” This performance stands in contrast to the struggles of competitors like OpenAI, whose recent GPT-5 model failed to impress the market. Google has managed to keep the momentum going with a series of popular product launches, such as the Nano Banana image editor and continuous upgrades to Gemini. These successes have reassured investors that the company is not just riding a hype wave but is delivering real, valuable tools that consumers want to use.
Financially, Google is diversifying its strength beyond advertising. Its cloud division has become a massive growth engine, attracting investment from Warren Buffett’s Berkshire Hathaway. The unit reported a 34% revenue increase in the third quarter and holds a backlog of $155 billion in contracts. This growth is being fueled by the strategic decision to rent out Google’s custom AI chips to outside customers. By sharing its powerful infrastructure, Google is enabling other businesses to build AI solutions while generating significant revenue for itself.
However, the company’s path is not without obstacles. Google is currently facing two major antitrust lawsuits in the US. While it recently secured a victory when a judge ruled against breaking up the company in a search monopoly case, the legal battles are far from over. A second trial is currently in progress to address the company’s illegal monopolization of the online ad market. The outcome could involve the forced divestiture of lucrative assets, although the ad business itself remains a reliable source of income amidst the uncertainty.