What is the news?
Google’s parent company Alphabet has achieved a major achievement. The company reached a market valuation of $4 trillion (about Rs 360 lakh crore) for the first time and became the second most valuable company in the world, surpassing Apple. Earlier this achievement has been achieved by Nvidia, Microsoft and Apple. The rise in shares has given Alphabet a stronger position in the list of selected giants of the tech sector.
Shares get support from AI deal
Alphabet’s shares surged after Apple chose Google’s Gemini AI model for a major update of its digital assistant Siri. Apple said that after investigation it found Google’s technology to be the most suitable. However, both the companies have not disclosed the price of this deal. This decision increased investor confidence and Alphabet’s market value went up rapidly.
Increased strength from AI products and cloud
In recent months, Alphabet launched a new version of Gemini AI and products like Image Generator, which reduced investor doubts and increased confidence. At the same time, Google Cloud has emerged as a big growth engine of the company. Its revenue increased by 34 percent in the third quarter. Renting out self-made AI chips to external customers has also strengthened the cloud business and raised expectations about future earnings.
Advertising business is stable
The company’s core advertising businesses, which include Google Search and YouTube, remained stable despite economic uncertainty and earnings remained consistent. However, Alphabet is facing two major antitrust cases in America. In one case the company has got relief, while in the other the hearing is going on regarding the online advertising market. The outcome of these cases may affect Google’s business model and strategy in the future.

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