Alphabet reaches coveted $4 trillion valuation after Apple-Gemini AI deal gets greenlit

Alphabet reached a $4 trillion market valuation on Monday, 12th January 2026. This milestone follows a significant strategic refocus on artificial intelligence that has restored investor confidence and positioned the firm at the forefront of the industry.

Last week, Alphabet surpassed Apple in market capitalisation for the first time since 2019, making it the world's second most valuable company. The valuation surge is part of a broader turnaround; shares rose approximately 65% in 2025, outshining most of its "Magnificent Seven" peers. The stock has gained a further 6% since the start of 2024.

Investor sentiment has been bolstered by the success of the Gemini 3 model, which received strong reviews and increased pressure on rivals like OpenAI. Additionally, Google Cloud has become a primary growth engine, with third-quarter revenue jumping 34% and a backlog of sales contracts reaching $155 billion. The unit's growth has been further accelerated by the decision to rent out Google’s proprietary AI chips to external customers.

The company's commercial reach is expanding through major partnerships. Samsung Electronics reportedly plans to double the number of its mobile devices featuring Gemini-powered AI this year. Furthermore, Apple has entered a multi-year deal to base its next generation of AI models and a revamped Siri on Google’s infrastructure. Meta Platforms is also reportedly in discussions to spend billions on Alphabet’s chipsets for its data centres starting in 2027.

Beyond its AI and cloud successes, Alphabet’s core advertising business has remained resilient despite economic uncertainty. The company’s legal position also stabilised following a September court ruling that allowed it to keep control of the Chrome browser and Android operating system. After Nvidia, Microsoft, and Apple, Alphabet is now the 4th company to achieve the $4 trillion milestone.