Google-parent company Alphabet briefly reached $4 trillion in valuation on Monday, according to a Reuters reporter. This has been seen as a sign that the company’s increased focus on artificial intelligence is paying off.
Alphabet also mentioned that the next-generation of Apple’s AI models will be based on Google’s Gemini under a multi-year deal. This collaboration is a huge change for Apple considering the iPhone-maker traditionally develops its own core technologies. Apple had stated that after “careful evaluation” they decided to go with Google’s AI technology to be “the most capable foundation” for their AI ambitions.
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Alphabet’s class-A shares rose as much as 1.7% to $334.04 to hit a record high before giving up those gains. Alphabet last week surpassed Apple in market capitalization for the first time since 2019, becoming the second most valuable company in the world. These milestones indicate a change in investor sentiment for Alphabet, with its stock rising about 65% in 2025, outperforming its peers on Wall Street’s so-called “magnificent seven.
This shift has been attributed to concerns that it let an early AI advantage slip by turning a once-overlooked cloud unit into a major growth engine and obtaining a rare tech investment from Berkshire Hathaway.
“Of the Magnificent 7 stocks, it’s the one name that has surprised us all over the last 12 months and they’re making inroads beyond their traditional model,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “What I would give the company credit for is innovation, that’s what they’ve done to separate them from a lot of other firms in recent days and you’re seeing it in earnings data.”
The Gemini 3 model has drawn strong reviews, intensifying pressure on rival OpenAI. OpenAI CEO Sam Altman issued an internal “code red” in early December pausing non‑core projects and redirecting teams to accelerate development in response to Google’s model.
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Alphabet reached $3 trillion back in September. This happened after its victory against the U.S. Department of Justice (DOJ) over antitrust issues.
Alphabet’s latest milestone brings it to the exclusive club of companies that have crossed the $4 trillion mark. Other companies in the group include Nvidia, Apple, and Microsoft. Both Nvidia and Microsoft topped the $4 trillion milestone for the first time in July 2025, while Apple crossed the threshold for the first time in October 2025. Since then, however, Apple and Microsoft have dropped well below the $4 trillion line.