Alphabet has become one of the world’s most valuable companies after its market capitalization briefly exceeded $4 trillion following confirmation that Apple will integrate Google’s artificial intelligence into its products this year.
The boost came after Apple announced it would introduce the technology underlying Google’s Gemini chatbot, including Siri, into its ecosystem, marking a major strategic endorsement of Alphabet’s AI capabilities.
Alphabet’s Class A shares rose 1.7 percent on the announcement, briefly hitting $334.04 and pushing the company into the elite $4 trillion valuation bracket before falling again later in the session.
Apple said the Gemini software provides the “most powerful foundation” for use across its global product base, which includes more than two billion active devices. The move represents a significant shift in Apple’s AI strategy as it accelerates efforts to compete with rivals in the rapidly evolving artificial intelligence market.
Google launched its large-language model Gemini in late 2023 as part of its challenge to OpenAI, whose ChatGPT product has dominated consumer awareness of generative AI. The agreement with Apple now gives Alphabet access to one of the largest consumer technology platforms in the world.
In a joint statement, the two companies confirmed that they had entered into a “multi-year collaboration” to support the development of Apple’s next generation of large-language models, which will be at the heart of Apple’s Intelligence department.
These systems, branded Apple Foundation Models, are made available to developers through Apple’s Foundation Models framework, allowing third-party apps to integrate Apple’s AI tools while leveraging Google’s underlying technology.
“After careful evaluation, Apple concluded that Google’s AI technology provides the most powerful foundation for Apple Foundation Models,” the companies said. “Apple is excited about the innovative new experiences this collaboration will bring to users.”
Analysts said the deal was a significant endorsement of Alphabet’s AI strategy while underscoring Apple’s urgency to strengthen its own capabilities.
Wedbush analysts called the announcement an “important validating moment” for Google, adding that it also represents a crucial step for Apple as the company works to accelerate its AI roadmap to 2026 and beyond.
“Although the timeline for fully integrating Gemini with Siri is longer than expected, this was a necessary step for Apple to deliver a truly competitive personal assistant across its hardware ecosystem,” the company said, noting the potential for future subscription-based AI revenue.
For Alphabet, the partnership underscores its growing influence in the AI arms race and cements its position alongside Microsoft and Nvidia as one of the dominant players shaping the next phase of global technology.
