Google has rolled out new artificial intelligence software and entered into several major partnerships, including a chip cooperation deal with Anthropic PBC. These moves have convinced investors that the company will not easily lose out to OpenAI—the provider of ChatGPT—or to other competitors.
Google’s latest multimodal model, Gemini 3, has been widely praised for its capabilities in reasoning, programming, and handling complex tasks that traditional AI chatbots often struggle with. Once-lagging Google Cloud is now growing steadily, supported in no small part by the global boom in AI services development and soaring demand for computing power.
At the same time, there are signs that demand is rising for Google’s own purpose-built AI chips—one of the few viable alternatives capable of competing with Nvidia’s dominant offerings.
Reports on Monday suggested that Meta is in talks to use Google’s chips. Since mid-October, Google’s parent company Alphabet has added nearly 1 trillion US dollars in market value. This surge has been driven by Warren Buffett’s 4.9 billion US-dollar purchase of Alphabet shares in the third quarter and Wall Street’s broadly optimistic view of its AI business. The company’s current market capitalization is approaching 4 trillion US dollars.
For years, Google executives have argued that deep, capital-intensive research would help the company fend off competitors, defend its position as the leading search engine, and build the computing platforms of the future. However, the emergence of ChatGPT has upended this narrative, posing the first genuine threat in many years to Google’s search business.
Even so, Google still has advantages that OpenAI does not: vast resources, an enormous pool of data to train and refine AI models, consistent profitability, and its own computing infrastructure.
Market Commentary:
Concerns that regulatory action could derail Google’s momentum are gradually fading. The company recently avoided the most severe outcome in a US antitrust lawsuit—being broken up.
At the same time, the search giant is making visible progress in areas beyond its core business. Google’s autonomous driving unit Waymo is expanding into multiple new US cities and has just added highway driving to the scope of its robotaxi services.
