Alphabet has rapidly gained share in the AI market following the launch of its Gemini models, eating into OpenAI’s early dominance. While OpenAI’s share of generative AI usage slid from 50% to 25% and it posted nearly $9 billion in annual losses, Alphabet leveraged its deep pockets and infrastructure to expand AI revenues and profits. In Q3 2025, Alphabet reported 16% year-over-year revenue growth to $102 billion and a 35% jump in diluted earnings per share. The company also maintained a net income margin of 32% and held enough cash to retire all outstanding debt twice over, underscoring its capital advantage in the AI arms race.

As one of the top holdings in the Global X Artificial Intelligence and Technology ETF, Alphabet represents 4.4% of the fund’s $7.75 billion in net assets. The ETF, which carries a 0.68% expense ratio and has delivered a 36.4% average annualized return over three years, benefited from Alphabet’s 65% stock gain in 2025—its best performance among the so-called Magnificent Seven. Investors credit the success of Google Cloud, the rapid rollout of new Gemini features and Waymo’s autonomous-taxi unit, which has already served over 10 million rides across six U.S. metros and plans expansion into 20 additional cities this year.

In a landmark agreement, Apple and Alphabet inked a multi-year deal under which Apple’s next-generation Foundation Models will be built on Google’s Gemini architecture and run on Google Cloud infrastructure. The partnership preserves Apple’s emphasis on privacy by keeping user data on devices and private cloud compute, while leveraging Google’s AI backbone to accelerate feature rollouts. Executives from both companies highlighted that the Universal Commerce Protocol and joint AI efforts will unlock innovative user experiences and address earlier concerns about Apple lagging in the AI race.

Alphabet’s stock soared 65% in 2025, driven by three key catalysts: the successful launch of Gemini 3, a decisive antitrust ruling and robust financial results. Judge Amit Mehta’s decision on September 3 allowed Alphabet to retain control of its Chrome browser and Android OS, removing a major overhang. Through the first three quarters, revenue climbed 14% to $289 billion and operating income rose to $93.1 billion. In early 2026, Apple’s commitment to power Siri with Gemini further solidified investor confidence, reinforcing Alphabet’s leadership in both search and AI.