How is Google doing? The company has regained ground within the sector, and now the first results are starting to show

Recently Alphabet, the holding company that controls Google and many other companies, became the second-largest company in the world by market capitalization, surpassing the threshold of 4 trillion dollars in total value. Alphabet, being precisely a holding company, does not operate directly in a single sector, but owns and controls multiple companies: its most well-known company is Google, but it also includes businesses active in cloud services, scientific research, autonomous driving, and artificial intelligence.

The recent financial result of Alphabet shows that investors recognize an enormous economic value in the holding company and have great confidence in its prospects for future growth. Today, in fact, Alphabet is second only to the technology company Nvidia, having overtaken Apple and Microsoft. Within the so-called “Magnificent 7” (MAG 7) – the group of seven major U.S. technology companies with the greatest relevance in financial markets (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla) – Alphabet was the one that recorded the highest growth in 2025, exceeding 60%.

Google’s race toward artificial intelligence

Alphabet has managed to increase its market value thanks to strategic and timely investments in artificial intelligence. The holding company, in fact, strongly bet on this sector when it was still in its development phase, and today it is reaping the results. A concrete example is Gemini, the artificial intelligence model developed by Google, which currently represents one of the most credible alternatives to ChatGPT, both in terms of language comprehension capabilities and integration with the company’s other services.

But Alphabet’s commercial strategy is not limited to software. The company has also entered the growing chip market, an essential component for the development of artificial intelligence systems. In particular, Google has designed its own TPUs (Tensor Processing Units), proprietary chips optimized for processing artificial intelligence models and used in the company’s own data centers. These chips compete with the so-called GPUs (Graphics Processing Units) made by Nvidia, which currently still holds the largest share of the hardware market for AI. GPUs are very powerful processors, originally designed for graphics, but which have proven ideal for training the neural networks underlying artificial intelligence tools. TPUs, on the other hand, are chips developed specifically by Google to make its own AI-related workloads more efficient and less expensive.

How Alphabet responded to the rise of ChatGPT

The debut of ChatGPT, in November 2022, partly caught Alphabet by surprise. In just two months, the service developed by OpenAI reached 100 million users, achieving an unprecedented result that quickly made it a point of reference in the emerging market of generative artificial intelligence. The impact was such that, in December of the same year, the New York Times reported how the sudden popularity of ChatGPT pushed Google’s management to declare the so-called “code red”, a maximum internal alert procedure reserved for the most serious strategic issues. The main fear was that chatbots of this kind could radically change the way people search for information online, calling into question the traditional model of web search. A huge risk for Google, which in that segment has held a market share close to 90% for years.

Over time, however, Google’s position in the field of artificial intelligence now appears significantly stronger than in 2022. The recovery was driven above all by Gemini, the chatbot developed by the company that has been progressively integrated into many products of the Google ecosystem. In recent months, the company has also made available Gemini 3, a new-generation language model among the most advanced in the world. At the same time, new flagship products have also arrived, such as Nano Banana Pro, an ultra-high-realism image and video generation system designed to compete directly with Sora, the model developed by OpenAI.