Alphabet Hits $4T as Apple Bets on Gemini AI

Alphabet has crossed the $4 trillion mark, a rare Wall Street milestone driven by renewed investor confidence in Google’s AI strategy and a newly confirmed multi-year Gemini partnership with Apple.

Alphabet joins the $4 trillion club

Alphabet briefly hit a $4 trillion market valuation on Monday, January 12, 2026, becoming the fourth company to reach that level. CNBC also reported Alphabet’s stock closed at $331.86, putting its market cap just over $4 trillion.

The move caps a sharp turnaround in sentiment, with Reuters reporting Alphabet’s stock surged about 65% in 2025, outperforming peers in the so-called “Magnificent Seven.” Reuters also noted Alphabet surpassed Apple in market capitalization last week for the first time since 2019, making it the world’s second-most valuable company behind Nvidia.

Behind the headline number is a broader narrative: investors are increasingly treating Alphabet not just as a search-and-ads powerhouse, but as a full-stack AI infrastructure player. That shift matters because market cap moves this large usually require more than a single product win—they require the belief that multiple business lines can compound growth at the same time.

The Apple–Gemini deal

Alphabet’s valuation pop followed confirmation that Apple will base the next generation of its AI models on Google’s Gemini under a multi-year agreement. CNBC reported Apple said Google’s Gemini will be the foundation for its AI models and will power the next generation of Siri.

Strategically, this is less about a one-time revenue bump and more about validation: Apple’s decision signals that Gemini and Google’s AI stack are viewed as mature enough to run at massive consumer scale. It also strengthens Alphabet’s position in the competitive AI landscape by tying its models and infrastructure to one of the world’s largest device ecosystems, increasing the “stickiness” of its platform over time.

This partnership can also reshape enterprise and developer perception. When a company like Apple chooses a model family and underlying infrastructure for flagship experiences, it sends a strong message to CIOs and builders evaluating which ecosystem will still look modern—and supported—three to five years from now.

Cloud growth and AI chips

Reuters reported Google Cloud revenue jumped 34% in the third quarter, and its backlog of non-recognized sales contracts rose to $155 billion. Reuters also said Google accelerated cloud growth by renting out its self-developed AI chips—previously reserved for internal use—to outside customers.

CNBC highlighted Alphabet’s chip push as well, noting Google unveiled “Ironwood,” the seventh generation of its TPU (Tensor Processing Unit) custom AI chips, positioning it as a potential alternative to Nvidia’s offerings. That combination—strong cloud demand plus differentiated chip supply—helps explain why investors are more willing to price Alphabet like a core AI infrastructure company rather than a mature internet business.

On the model side, Reuters said the Gemini 3 model drew strong reviews, increasing pressure on rivals and helping restore confidence that Google is not falling behind in the model race. CNBC likewise reported Google introduced Gemini 3 to rave reviews, reinforcing the idea that Alphabet’s AI comeback is being taken seriously across the market.

Partnerships, ads resilience, and regulation

Alphabet’s momentum is also being reinforced by a widening partner network. Reuters cited an earlier Reuters report saying Samsung plans to double the number of mobile devices with AI features powered by Gemini this year. Reuters also reported The Information said Meta Platforms was in talks to spend billions on Alphabet’s chips for its data centers starting in 2027.

While AI is the headline driver, Alphabet’s core advertising engine remains a key support. Reuters reported Alphabet’s advertising business has largely held steady despite economic uncertainty and competition. That stability matters because it funds the capital-heavy AI buildout—chips, data centers, and cloud capacity—without requiring Alphabet to bet the entire company on near-term AI monetization.

Regulatory overhang has also eased relative to prior fears. Reuters said the stock benefited after a U.S. judge ruled in September against breaking up the company, allowing Alphabet to retain control of the Chrome browser and Android mobile operating system. Together, these pillars—AI credibility, cloud momentum, chip strategy, ad durability, and reduced breakup risk—help explain why the market is now willing to award Alphabet a valuation once reserved for the most dominant tech franchises.