The Guardian·2026-01-12 17:14Financial Milestone - Alphabet reached a $4 trillion valuation for the first time, surpassing Apple to become the second-most valuable company in the world [1] - Alphabet is the fourth company to achieve this milestone, following Nvidia, Microsoft, and Apple [1] AI Partnership - Apple selected Google's Gemini AI model to enhance its digital assistant Siri, which is pre-installed on every iPhone, although the financial details of the deal were not disclosed [2] - Apple stated that Google's technology provides the most capable foundation for its AI models [2] Stock Performance - Alphabet's stock surged approximately 65% in 2025, outperforming its peers in the "Magnificent Seven" group of elite stocks [3] - Despite concerns of a stock market bubble, investor enthusiasm for AI investments remains strong [3] Product Launches - Alphabet has addressed investor concerns regarding its AI strategy through high-profile product launches, including the Gemini AI model and the Nano Banana image generator [4] - OpenAI's latest model, GPT-5, did not meet expectations, allowing Alphabet to gain a competitive edge [4] Cloud Business Growth - Google Cloud's revenue increased by 34% in the third quarter, with a backlog of non-recognized sales contracts reaching $155 billion [5] - The cloud unit's growth has been bolstered by renting out self-developed AI chips previously reserved for internal use [5] Advertising Business Stability - Google's advertising business, primarily driven by Google Search and YouTube, has remained stable despite economic uncertainties and competition [6] - The company is currently navigating two significant US antitrust lawsuits, with a judge ruling against breaking up the company in the first case [6] Antitrust Legal Challenges - In the second antitrust case, a judge ruled that Google had illegally monopolized the online ad market, with a trial underway to determine remedies, which may include divesting parts of its advertising business [7]