Alphabet, the parent company of Google and one of the United States’ leading technology firms, has reached a market valuation of $4 trillion for the first time, driven by rising share prices following positive developments in artificial intelligence (AI).
On Monday, as of 15:25 GMT, Alphabet’s shares rose 1.6 percent to $334.44 after U.S. markets opened, setting a record high and pushing the company’s market capitalisation past the $4 trillion threshold. Shares are currently trading around $332.
This achievement makes Alphabet the fourth U.S. company to surpass a $4 trillion valuation, joining Nvidia, Microsoft and Apple.
The company’s shares jumped further after the announcement of a multi-year partnership between Apple and Google, which will use Google’s Gemini models and cloud infrastructure to develop the next generation of Apple Foundation Models.
According to a joint statement, these models will power forthcoming Apple Intelligence features, including a more personalised Siri set to launch later this year.
Apple confirmed that, after thorough evaluation, it determined Google’s AI technology provides the “most capable foundation” for its upcoming models.
The iPhone maker emphasised that its intelligence platform will continue to operate on Apple devices and private cloud systems, maintaining its “industry-leading privacy standards.” Financial terms of the partnership were not disclosed.
The collaboration raises questions about Apple’s ongoing engagement with OpenAI, announced in July 2024, which involved integrating ChatGPT into Apple products. It remains unclear how this agreement will coexist with Google’s AI partnership.
Despite achieving the $4 trillion milestone, Alphabet remains the second most valuable U.S. company by market capitalisation, trailing Nvidia based on current share prices.
As competition among leading technology firms to dominate next-generation AI-driven products intensifies, investors are increasingly focused on Alphabet’s AI capabilities.
