Google's AI Renaissance: Alphabet Races Toward $4 Trillion Valuation as Gemini 3 Sparks Market Surge

Alphabet races toward $4 trillion valuation as AI-fueled gains accelerate

Nov 24 (Reuters) - Alphabet closed in on a $4 trillion valuation on Monday, set to become only the fourth company to enter the exclusive club, as the Google parent rides an artificial intelligence-driven rally. Shares of the company (GOOGL.O), opens new tab rose more than 5% to hit a record high of $315.9, giving it a market capitalization of $3.82 trillion. The stock has climbed nearly 70% so far this year, far outperforming AI rivals Microsoft (MSFT.O), opens new tab and Amazon.com (AMZN.O), opens new tab. Nvidia (NVDA.O), opens new tab, Microsoft (MSFT.O), opens new tab and Apple (AAPL.O), opens new tab have previously hit a $4 trillion valuation. Only Nvidia and Apple remain on the list currently. The surge reflects a striking reversal in sentiment toward Alphabet after some investors feared the company had lost its AI edge to OpenAI after the 2022 launch of ChatGPT, even though it invented much of the underlying technology behind generative AI. Alphabet has regained momentum this year by turning its cloud business, once an also-ran, into a key growth driver, drawing in Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab as an investor and winning strong early reviews for its new Gemini 3 model. Google shares have also rallied as Big Tech emerged in recent months largely unscathed from the bipartisan antitrust push that began in U.S. President Donald Trump's first term. The company sidestepped a forced sale of its Chrome browser after a court found its search business to be an illegal monopoly but stopped short of ordering a breakup. Still, the milestone may fan fears about surging valuations that some business leaders warn have detached market movements from business fundamentals, sparking worries of a bubble reminiscent of the dot-com boom of the 1990s. A wave of circular deals involving OpenAI and Nvidia - two of the companies at the heart of the AI boom - have also amplified the fears. Still, analysts believe Google is well-positioned in the AI race, thanks to its strong cash flow, in-house chips that serve as an alternative to Nvidia's pricey processors and a sprawling internet search business that is already benefiting from AI integration. Reporting by Zaheer Kachwala and Aditya Soni in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

How Google put together the pieces for its AI comeback

When ChatGPT launched in 2022, Google was caught flatfooted, but the launch of Gemini 3 and the Ironwood AI chip this month has experts raving about Alphabet's AI comeback. Google kicked off November by unveiling Ironwood, the seventh generation of its tensor processing units, or TPUs, that the company says lets customers "run and scale the largest, most data-intensive models in existence." And last week, Google launched Gemini 3, its latest artificial intelligence model, saying it requires "less prompting" and provides smarter answers than its predecessors. Salesforce CEO Marc Benioff captured the excitement around Gemini 3 with a Sunday post on X, saying that despite using OpenAI's ChatGPT daily for three years, he wasn't going back after two hours of using Gemini 3. "The leap is insane," wrote Benioff, whose company has partnerships with Google, OpenAI and other frontier AI model providers. "Everything is sharper and faster. It feels like the world just changed, again." Most tech stocks were down to start the week, except for one: Alphabet. Shares of the Google parent surged more than 5% on Monday, adding to last week's gain of more than 8%. Warren Buffett's Berkshire Hathaway revealed earlier this month that it owns a $4.3 billion stake in Alphabet as of the end of the third quarter. Alphabet shares are up nearly 70% this year and have outperformed Meta's by more than 50 percentage points this year, and last week, Alphabet's market cap surpassed Microsoft's. All of this came despite Nvidia reporting stronger-than-expect revenue and guidance in its third-quarter earnings last week. "You may be asking why almost all of the AI stocks we cover are selling off after such good news from Nvidia," Melius Research analyst Ben Reitzes wrote in a note Monday, referring to Nvidia's positive third quarter earnings last week. "There is one real reason for worry and it is the 'AI comeback' of Alphabet." But while Google appears to have regained the edge, its lead over rivals remains razor thin in the gruelingly competitive AI market, experts said.

Is Google The New Leader of the AI Race?

Google's parent company, Alphabet, is very close to becoming the fourth company to join the $4 trillion market cap club (current members to have crossed that threshold are Apple, Microsoft, and Nvidia). That's thanks to a week of arguably great news for its AI efforts. Fellow tech giant and significant Nvidia customer Meta is considering supplying some of its data centers with Google chips, according to The Information on Monday. The deal that's potentially worth billions of dollars would start in 2027, the report claims, but Meta could also rent chips from Google Cloud as early as next year. Preceding that piece of news was a flashy product reveal. Last week, the tech giant released its latest AI model, Gemini 3, and announced some updates to its viral image generator Nano Banana Pro, both to much fanfare. According to The Verge, AI benchmarking firm LMArena's co-founder and CTO, Wei-Lin Chiang, said that the release of Gemini 3 represents "more than a leaderboard shuffle." Right now, two companies are generally seen as leading the AI industry. You have OpenAI on the products side, whose ChatGPT has become almost synonymous with the word 'AI chatbot'. On the hardware infrastructure side, you have Nvidia, the world's number one supplier of graphics processing units (GPUs) that are used to power AI. But Google, a company that has plenty of money and resources to spend and institutional knowledge to take advantage of as a Silicon Valley veteran, seems well poised to give a good fight on both fronts. Many people all over the internet, including Salesforce CEO Marc Benioff, have claimed that Google's Gemini 3 model is better than OpenAI's ChatGPT by a significant degree. From the outside looking in, OpenAI is still the leading name in AI chatbots for the time being. But, according to a New York Times report, the head of ChatGPT, Nick Turley, told employees in October that the company was facing "the greatest competitive pressure we've ever seen." On the AI chips front, Nvidia is still the confident frontrunner, but Google might score a big win in its catch-up efforts if The Information report is true. Nvidia's GPUs are the preferred AI chip right now, but Google's custom tensor processing units (TPUs) are providing at least some competition. While GPUs are considered versatile like Swiss Army knives with their flexibility to accommodate a broad range of tasks, Google's TPUs are specialized and considered more efficient for specific AI workloads. TPUs are a type of application-specific integrated circuit (ASIC). An industry expert told CNBC last week that he sees custom ASICs growing "faster than the GPU market over the next few years." On top of the GPUs it purchases from Nvidia, Google has been using its own TPUs to power its cloud computing business for several years now. The tech giant is also renting out its TPUs to AI companies like Anthropic, which then uses the chips for its chatbot Claude in tandem with Nvidia GPUs, as well as Amazon's Trainium chips. Meta would no doubt be a significant addition to that customer list, and could perhaps give Google's custom chips business a more competitive edge in a market dominated by a behemoth.

Google, the sleeping giant in global AI race, now 'fully awake' | Fortune

The internet giant has released new AI software and struck deals, such as a chip tie-up with Anthropic PBC, that have reassured investors the company won't easily lose to ChatGPT creator OpenAI and other rivals. Google's newest multi-purpose model, Gemini 3, won immediate praise for its capabilities in reasoning and coding, as well as niche tasks that have tripped up AI chatbots. Google's cloud business, once an also-ran, is growing steadily, thanks in part to the global rush to develop AI services and demand for compute. And there are signs of rising demand for Google's specialized AI chips, one of the few viable alternatives to Nvidia Corp.'s dominant gear. A report on Monday that Meta Platforms Inc. is in talks to use Google's chips sent shares of its parent Alphabet Inc. soaring. The stock has added nearly $1 trillion in market capitalization since mid-October, helped by Warren Buffett taking a $4.9 billion stake during the third quarter and broader Wall Street enthusiasm for its AI efforts. Google owner Alphabet Inc.'s shares rose as much as 3.22% in New York on Tuesday. The company is on track to hit a $4 trillion market capitalization for the first time. SoftBank Group, one of OpenAI's biggest backers, fell to a two-month low on Tuesday on worries about the competition from Google's Gemini. Nvidia shares fell as much as 5.51% on Tuesday, erasing $243 billion in market value. "Google has arguably always been the dark horse in this AI race," said Neil Shah, analyst and cofounder at Counterpoint Research. It's "a sleeping giant that is now fully awake." For years, Google executives have argued that deep, costly research would help the company fend off rivals, defend its turf as the leading search engine and invent the computing platforms of tomorrow. Then ChatGPT came along, presenting the first real threat to Google search in years, even though Google pioneered the tech underpinning OpenAI's chatbot. Still, Google has plenty of resources that OpenAI doesn't: a corpus of ready data to train and refine AI models; flowing profits; and its own computing infrastructure. "We've taken a full, deep, full-stack approach to AI," Sundar Pichai, chief executive officer for Google and Alphabet, told investors last quarter. "And that really plays out." Any concerns that Google might be held back by regulators are dying away. The company recently avoided the most severe outcome from a US anti-monopoly case -- a breakup of its business -- in part because of the perceived threat from AI newcomers. And the search giant has shown some progress in the longtime effort to diversify beyond its core business. Waymo, Alphabet's driverless car unit, is coming to several new cities and just added freeway driving to its taxi service, a feat made possible by the company's enormous research and investment. Some of Google's edge comes from its economics. It's one of the few companies that produces what the industry calls the full stack in computing. Google makes the AI apps people use, like its popular Nano Banana image generator, as well as the software models, the cloud computing architecture and the chips underneath. The company also has a data goldmine for constructing AI models from its search index, Android phones and YouTube -- data that Google often keeps for itself. That means, in theory, Google has more control over the technical direction of AI products and doesn't necessarily have to pay suppliers, unlike OpenAI. Several tech companies, including Microsoft Corp. and OpenAI, have plotted ways to develop their own semiconductors or forge ties that make them less reliant on Nvidia's bestsellers. For years, Google was effectively its own sole customer for its homegrown processors, called tensor processing units, or TPUs, which the company first designed more than a decade ago to speed up the generation of search results and has since adapted to handle complex AI tasks. That's changing. AI startup Anthropic said in October said it would use as many as 1 million Google TPUs in a deal worth tens of billions of dollars. On Monday, tech publication the Information reported that Meta planned to use Google's chips in its data centers in 2027. Google declined to address the specific plans, but said that its cloud business is "accelerating demand" for both its custom TPUs and Nvidia's graphics processing units. "We are committed to supporting both, as we have for years," a spokesperson wrote in a statement. Meta declined to comment on the report on Monday night. "We're delighted by Google's success," a spokesperson for Nvidia said in a statement Tuesday. "They've made great advances in AI, and we continue to supply to Google." The spokesperson added: "Nvidia is a generation ahead of the industry - it's the only platform that runs every AI model and does it everywhere computing is done." Analysts read the Meta news as a signal of Google's success. "Many others have failed in their quest to build custom chips, but Google can clearly add another string to its bow here," Ben Barringer, head of technology research for Quilter Cheviot, wrote in an email. Google has taken risks to get here. In early 2023, Google consolidated its AI efforts under Demis Hassabis, the leader of its London AI lab DeepMind. The reshuffle had some bumps, most notably a botched rollout of an image-generation product. For several years, DeepMind pursued research in areas like protein-folding that led to new commercial strategies (and a Nobel prize) but contributed little to Google's bottom line. Under the reorganization, the AI unit is focused almost squarely on foundational models that keep pace with OpenAI, Microsoft and others. Hassabis, a renowned computer scientist, has helped retain key AI engineers despite multimillion-dollar offers from rivals. His boss, Pichai, has been willing to splurge on talent. Gemini 3 Pro has risen to the top of closely watched AI leaderboards on LMArena and Humanity's Last Exam. Andrej Karpathy, a founding member of OpenAI, said it's "clearly a tier 1 LLM," referring to large language models. Google pitched the model as one that can solve complex science and math problems, and address nagging issues -- such as generating images and overlaid text with incorrect spelling -- that might deter enterprise customers from adopting AI services more widely. Consumer interest is harder to gauge. Google said last week that 650 million people use its Gemini app. OpenAI recently said ChatGPT hit 800 million weekly users. As of October, Gemini's app had 73 million monthly downloads, well shy of ChatGPT's 93 million monthly downloads, according to research firm Sensor Tower. Google is an advertising behemoth, but it has historically struggled to find other commercial models. Its cloud business reported third-quarter revenue of $15.2 billion, up 34% from the prior year. Still, that remains in third-place behind Microsoft and Amazon Web Services, which posted more than double Google's cloud sales in the most recent quarter. Counterpoint Research's Shah said Google's AI adoption with enterprises lags Microsoft and Anthropic. Meanwhile, OpenAI is targeting profits by selling a premium version of ChatGPT and adjacent software to companies. It's cutting deals with chipmakers from Broadcom Inc. to Advanced Micro Devices Inc. to Nvidia to support its AI ambitions. Google's TPUs are mostly attractive to a handful of companies with big computing bills, like Meta and Anthropic, said Meryem Arik, CEO of the AI startup Doubleword. And the chip industry is "not a zero-sum game with just one winner," said Barringer. For one, AI developers can only access Google's chips through the company's own cloud service. They can use Nvidia's graphics processing units, or GPUs, more flexibly. "As soon as you use TPUs, you're locked into" the Google cloud ecosystem, said Arik. Being tied to a single supplier might have been something companies avoided. That's no longer the case for Google, thanks to its advances in AI. "It's definitely fair to say that Google is back in the game with Gemini 3," said Thomas Husson, analyst at Forrester. "In fact, to paraphrase a quote attributed to Mark Twain, reports of Google's death have been widely exaggerated, not to say irrelevant."

Google parent Alphabet races toward $4 trillion market cap

It's a good day to be an Google shareholder. Even amid this week's sharp tech rally, the stock is emerging as a Wall Street darling. As of Tuesday morning, shares of the tech giant are exploding higher, and the reason reaches far beyond the company's best-known business lines -- whether search, ads, or YouTube. This time around, what's most exciting are Google parent Alphabet's AI initiatives and products -- plus what you might call a rapid shift in investor perception. Shares in Alphabet were up about 1.3% in Tuesday morning trading, putting the company's market capitalization at about $3.9 trillion. The stock is up almost 70% so far this year. Meanwhile, Nvidia stock was off more than 5% Tuesday morning, continuing its recent selloff following a report that Meta may use Google's AI chips. Nvidia stock has dropped almost 10% in the last month, though it remains up 25% on the year. Here's what to know. Google would be just the second company in U.S. stock market history to hit a $4 trillion market cap, one step behind AI chip powerhouse Nvidia. Nvidia hit a $5 trillion market cap last month before retreating. Nvidia's market cap was all the way back to less than $4.2 trillion on Tuesday morning. Investors were already warming to Google stock after the disclosure earlier this month that Warren Buffett's Berkshire Hathaway has quietly built a multibillion-dollar position in Alphabet during the third-quarter -- its first-ever stake in the tech giant. For a famously value-seeking shop, that amounts to an endorsement. It signals that Alphabet's AI strategy is more legit than hype, and that the stock valuation offers room for the sort of significant upside that Buffett's team looks for. Most notably, Alphabet's new Gemini model -- its largest and most-sophisticated AI system yet -- is being received with unusually positive early reports. Investors, until recent weeks, had worried Alphabet might be falling behind with its AI models. But instead, the launch has reframed the company as a forward-looking heavyweight in what is arguably the entire tech sector's most competitive space. Also powering the historic run are reports that Meta may be in talks to buy Google-designed AI chips. Meta is one of the largest AI spenders in the world -- so much so that its capital expenditures have recently spooked investors. Any shift of its budget away from Nvidia could have tremendous, highly valuable implications. Even if a deal never maweterializes, the fact that Alphabet is in the conversation signals how far its in-house offerings have come. All in all, Alphabet sat just about $300 billion south of Nvidia's market cap on Tuesday. That gap once looked unbridgeable. After the past month, it suddenly looks like the next big tech race.

Google Went After OpenAI But Ended up Rattling NVIDIA | AIM

Two years ago, no one could have imagined that Google would suddenly leap ahead of OpenAI in the AI race. The search giant has come a long way since Bard's rocky debut in 2023. In its inaugural demo, the chatbot incorrectly stated that the James Webb Space Telescope had taken the first-ever image of an exoplanet, even though the first such image was captured in 2004. This mistake proved embarrassing for Google. Following that, in 2024, Google's image generation model, Gemini, faced criticism for producing historically inaccurate and racially biased visuals. Between 2022 and 2024, OpenAI surged ahead as ChatGPT became a household name. Feeling the pressure, Google launched Gemini in December 2023 and tweaked its benchmark methodology to assert an edge over GPT

Alphabet heads for $4trn valuation on reports Meta to buy Google AI chips

Alphabet climbed close to a $4trn valuation yesterday as markets were enthusiastic about reports of a potential deal with Meta for Google's TPU AI chips. Nvidia and OpenAI, and their various circular investments, have grabbed most of the AI headlines in recent months, but analysts think Google may be making strides to compete with Nvidia when it comes to the chips that are powering the AI boom. According to Reuters, Google parent company Alphabet saw its shares rise by some 5pc yesterday, giving it a market valuation of over $3.8bn. Only three other companies have reached the 4trn mark - Microsoft, Nvidia and Apple, with only the latter two staying there. The fact that Nvidia's shares slumped by over 2pc yesterday suggests that traders think Google has a good shot of rivalling Nvidia's famous - and pricey - Blackwell GPUs. Of course reports by The Information that Meta is in talks with them to acquire billions of Google's tensor processing units (TPUs) for its data centres drove much of that optimism, as well as the same publication's reports that Meta would also look at renting chips from Google's cloud division next year. Just last month Anthropic announced it would be taking up to one million TPUs from Google to power its AI research, a boost to the Google Cloud Technologies' aspirations to compete on chips in the AI era. "Anthropic's choice to significantly expand its usage of TPUs reflects the strong price-performance and efficiency its teams have seen with TPUs for several years," Thomas Kurian, CEO at Google Cloud said at the time. "We are continuing to innovate and drive further efficiencies and increased capacity of our TPUs, building on our already mature AI accelerator portfolio, including our seventh generation TPU, Ironwood." Over 2025 Alphabet's shares have risen some 70pc, indicating analysts like what they see when it comes to its ability to compete with the likes of Nvidia on chips, and OpenAI when it comes to its Gemini AI models. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

ChatGPT is 3 and Google just crashed the party

Three years after losing ground to ChatGPT, Google has roared back with Gemini 3, soaring chip demand and a trillion-dollar valuation surge -- challenging the notion that OpenAI still dominates the AI future. Long before ChatGPT became a household name, a small group inside Google Search pitched a radical idea: replace the familiar list of blue links with an AI chatbot that could answer people's questions directly. This was 2021. The proposal was quickly shelved. Not because Google lacked the technology, but because it was unwilling to tamper with the engine that powered nearly $200 billion in yearly revenue. Today, that hesitation looks like the moment Google let someone else seize its future. OpenAI did exactly what Google chose not to: it put a chatbot front and centre. When ChatGPT launched in late 2022, it didn't just captivate the world -- it exposed how slowly Google had moved to commercialise its own breakthroughs, including the transformer architecture OpenAI freely borrowed from Google's 2017 research. But as ChatGPT marks its third anniversary, the pendulum is swinging back. According to Bloomberg, Alphabet's resurgence is so strong that its stock is now within striking distance of Nvidia's $4.2 trillion valuation, propelled by rave reviews for its Gemini 3 model and growing demand for its homegrown tensor processing units (TPUs). Google has spent the past three years building out a full-stack AI ecosystem largely behind the curtain -- from chips and cloud infrastructure to frontier models and consumer apps. The payoff is now visible everywhere: a revitalised cloud business, surging demand for its homegrown AI chips, and a new generation of Gemini models that are winning industry respect and rattling competitors from OpenAI to Nvidia. Also Read: ChatGPT effect: In three years AI chatbot has changed way people look things up Google's turning point came with the release of Gemini 3. The model earned immediate praise for its reasoning, coding abilities and performance on niche tasks that typically stump chatbots. It quickly climbed AI leaderboards, prompting Andrej Karpathy -- one of OpenAI's founding members -- to call it "clearly a tier 1 (Large Language Model) LLM." For Google, it was vindication. A company once accused of moving too slowly was suddenly matching OpenAI's pace. What makes Google's ascent more striking is how deeply vertical its AI bets have become. Google is one of the only companies on the planet that produces the entire AI stack: the apps (like the Nano Banana image generator), the foundational models, the cloud infrastructure and the chips underneath. Demand for its TPUs -- once used almost exclusively by Google itself -- is now rising. AI startup Anthropic struck a deal to use up to 1 million Google TPUs, a contract worth tens of billions. Meta is reportedly exploring Google's chips for its data centres from 2027, a development that sent Alphabet's valuation soaring and triggered a selloff in SoftBank (which backs OpenAI) and a dip in Nvidia shares. As Ben Barringer of Quilter Cheviot told Bloomberg, "Many others have failed in their quest to build custom chips, but Google can clearly add another string to its bow here." Alphabet has added nearly $1 trillion in market cap since mid-October, buoyed by Warren Buffett's $4.9 billion stake and growing conviction that Google won't cede the AI future to OpenAI, Microsoft or anyone else. Neil Shah of Counterpoint Research summed it up best, saying that Google has always been "a sleeping giant" and it's suddenly awake. Google's confidence has long stemmed from its economics. It has: Also Read: Is Google-Alphabet becoming the new leader of AI stocks as Gemini 3 gains power? CEO Sundar Pichai put it plainly on an earnings call: "We've taken a full, deep, full-stack approach to AI. And that really plays out." That approach accelerated after a 2023 reorganisation that placed DeepMind's Demis Hassabis at the helm of Google's combined AI division. Hassabis's mandate: focus almost entirely on frontier models and pull ahead. He has reportedly kept key talent from defecting, despite multimillion-dollar offers from rivals. Alphabet's rally has pushed its valuation beyond historic norms. Its forward earnings multiple has risen to 27x -- above its 10-year average of 20x, Bloomberg noted. Its 14-day Relative Strength Index (RSI) has touched 75, indicating the stock may be overbought. Matthew Maley of Miller Tabak told Bloomberg that Google "could take the leadership role for the AI industry going forward," but cautioned that the stock "could be due for a pullback." OpenAI still leads in consumer mindshare, though. ChatGPT recently hit 800 million weekly users, while Google says 650 million use its Gemini app. And OpenAI and Microsoft have deeper enterprise traction than Google Cloud, which remains third behind AWS and Azure. However, Bloomberg notes that Google's AI momentum is undeniable, even if its enterprise adoption lags. As Thomas Husson of Forrester told the publication: "It's definitely fair to say that Google is back in the game with Gemini 3." To paraphrase Mark Twain, he added, reports of Google's death "have been widely exaggerated." Also Read: Google's AI infra spend triples to over $90 billion as Pichai plays down bubble fears As ChatGPT completes three years, the AI landscape looks very different from the one OpenAI dominated in 2022. Back then, Google was scrambling to respond to a product inspired by its own research. Today, Google has quietly turned its research depth, infrastructure and chip strategy into a formidable challenge to OpenAI's first-mover advantage. And as much as OpenAI pushed the industry into its generative AI era, it's Google that spent the past three years assembling the machine that could define what comes next.

Gemini 3 Shook OpenAI To Its Core : Pushing OpenAI to Rethink Its Path

What happens when the seemingly unstoppable force of innovation meets an equally unyielding competitor? The release of Gemini 3, Google's latest AI breakthrough, has sent shockwaves through the tech world, leaving even industry giants like OpenAI scrambling to recalibrate. Touted as one of the most advanced AI models ever created, Gemini 3 doesn't just rival OpenAI's GPT-4, it challenges its very foundation. A leaked memo from OpenAI's CEO, Sam Altman, revealed a startling reality: the gap between these two AI titans is narrowing faster than anyone expected. For a company that has long been synonymous with innovative AI, this moment is more than a wake-up call, it's a reckoning. Below Matthew Berman provides more insights into the profound implications of Gemini 3's debut and the strategic maneuvers it has triggered across the AI landscape. From Google's unparalleled access to proprietary data to its custom-built hardware, every element of its strategy underscores a calculated bid for dominance. But what does this mean for OpenAI, a company facing mounting challenges in funding and infrastructure? And how will other players like Microsoft, Meta, and Apple respond to this seismic shift? As the AI race heats up, the stakes have never been higher, and the choices made now will define the future of the industry. The answers, as you'll discover, are as complex as the algorithms driving these systems. Google's success with Gemini 3 is not a matter of chance. It is the result of a carefully crafted AI strategy that combines innovative technology, proprietary resources, and seamless integration across its platforms. Several key elements contribute to Google's dominance in the AI sector: This multifaceted approach has positioned Google as a dominant force in the AI industry, with Gemini 3 serving as a testament to its technological and strategic prowess. While OpenAI has achieved remarkable success with its ChatGPT models, it faces growing challenges in light of Google's advancements. The leaked memo from Sam Altman sheds light on several vulnerabilities that threaten OpenAI's position in the AI race: Despite these challenges, OpenAI remains a significant player in the AI space, using its strong brand recognition, innovative models, and loyal user base to maintain relevance and competitiveness. Sam Altman Memo Admits Google's AI Surge Advance your knowledge on OpenAI by reading more of our detailed content. The AI race is intensifying, with major technology companies adopting distinct strategies to secure their positions in this rapidly evolving field. A closer look at the competition reveals unique approaches and challenges: Each company faces distinct challenges and opportunities, but Google's holistic approach, spanning advanced models, proprietary data, and platform integration, gives it a clear edge in this competitive environment. Several strategic factors have propelled Google to the forefront of the AI race, creating significant barriers for competitors and solidifying its leadership position: These advantages not only strengthen Google's position in the AI industry but also make it increasingly difficult for competitors to close the gap. The release of Gemini 3 has had a profound impact on the market, with Google's stock experiencing significant growth as investors recognize its expanding dominance in AI. This development highlights the fantastic potential of AI across industries and market dynamics. Google's holistic approach, encompassing advanced models, proprietary data, custom silicon, and seamless platform integration, positions it as a frontrunner in the AI race. Meanwhile, competitors like OpenAI, Microsoft, and Meta face mounting pressure to innovate and adapt to the rapidly changing landscape. As the race accelerates, the ability to balance innovation, infrastructure investment, and strategic positioning will determine which companies emerge as leaders in this fantastic industry.

Google, the sleeping giant in global AI race, now 'fully awake'

Since the launch of ChatGPT three years ago, analysts and technologists -- even a Google engineer and the company's former chief executive -- have declared Google behind in the high-stakes race to develop artificial intelligence. Not anymore. The internet giant has released new AI software and struck deals, such as a chip tie-up with Anthropic PBC, that have reassured investors the company won't easily lose to ChatGPT creator OpenAI and other rivals. Google's newest multipurpose model, Gemini 3, won immediate praise for its capabilities in reasoning and coding, as well as niche tasks that have tripped up AI chatbots. Google's cloud business, once an also-ran, is growing steadily, thanks in part to the global rush to develop AI services and demand for compute. And there are signs of rising demand for Google's specialized AI chips, one of the few viable alternatives to Nvidia's dominant gear. A report on Monday that Meta Platforms is in talks to use Google's chips sent shares of its parent, Alphabet, soaring. The stock has added nearly $1 trillion in market capitalization since mid-October, helped by Warren Buffett taking a $4.9 billion stake during the third quarter and broader Wall Street enthusiasm for its AI efforts. The company is on track to hit a $4 trillion market capitalization for the first time. SoftBank Group, one of OpenAI's biggest backers, fell to a two-month low on Tuesday on worries about the competition from Google's Gemini. Nvidia shares fell as much as 5.51% on Tuesday, erasing $243 billion in market value.

Alphabet races toward $4 trillion valuation as AI-fueled gains accelerate - The Economic Times

Shares of the company rose more than 5% to hit a record high of $315.9, giving it a market capitalisation of $3.82 trillion. The stock has climbed nearly 70% so far this year, far outperforming AI rivals Microsoft and Amazon.Alphabet closed in on a $4 trillion valuation on Monday, set to become only the fourth company to enter the exclusive club, as the Google parent rides an artificial intelligence-driven rally. Shares of the company rose more than 5% to hit a record high of $315.9, giving it a market capitalisation of $3.82 trillion. The stock has climbed nearly 70% so far this year, far outperforming AI rivals Microsoft and Amazon. Nvidia, Microsoft and Apple have previously hit a $4 trillion valuation. Only Nvidia and Apple remain on the list currently. The surge reflects a striking reversal in sentiment toward Alphabet after some investors feared the company had lost its AI edge to OpenAI after the 2022 launch of ChatGPT, even though it invented much of the underlying technology behind generative AI. Alphabet has regained momentum this year by turning its cloud business, once an also-ran, into a key growth driver, drawing in Warren Buffett's Berkshire Hathaway as an investor and winning strong early reviews for its new Gemini 3 model. Still, the milestone may fan fears about surging valuations that some business leaders warn have detached market movements from business fundamentals, sparking worries of a bubble reminiscent of the dot-com boom of the 1990s. A wave of circular deals involving OpenAI and Nvidia - two of the companies at the heart of the AI boom - have also amplified the fears. Still, analysts believe Google is well-positioned in the AI race, thanks to its strong cash flow, in-house chips that serve as an alternative to Nvidia's pricey processors and a sprawling internet search business that is already benefiting from AI integration.