Google’s corporate parent joins $4 trillion club as investors continue to bet on AI breakthroughs
Google’s parent company, Alphabet Inc., has reached a market value of $4 trillion, becoming one of the world’s most valuable companies. This happened on Monday, making Alphabet the fourth Big Tech company to reach this level.
Alphabet reached this milestone just four months after avoiding a major breakup by the U.S. government. Last year, a court ruled that Google’s search engine was an illegal monopoly. However, the judge did not force the company to split apart. Investors saw this as good news, and Alphabet’s stock price rose 57%, adding $1.4 trillion in value.
Alphabet joins a small group of companies worth $4 trillion or more. These include Nvidia, Apple, and Microsoft. Nvidia even briefly reached $5 trillion, but its stock later fell due to worries that the fast growth of artificial intelligence (AI) could turn into a bubble.
Other tech companies are also investing heavily in AI. Amazon is valued at $2.6 trillion, Meta (Facebook’s parent company) at $1.6 trillion, and Tesla at $1.5 trillion. Tesla’s CEO Elon Musk could receive a huge bonus if the company reaches certain goals, including a much higher market value.
Alphabet’s success is closely linked to artificial intelligence. Google is using AI to improve its search engine, making it more conversational to compete with tools like ChatGPT. Its new Gemini AI model has received very positive reviews.
Google’s Cloud division, which sells AI tools to businesses and governments, has become its fastest-growing business. Its Waymo robotaxi service is also expanding in U.S. cities.
Still, there are risks. Some experts worry that excitement about AI may be exaggerated. Alphabet CEO Sundar Pichai admitted that the market may be acting irrationally and said that no company is safe if the AI bubble bursts.
https://apnews.com/article/alphabet-google-4-trillion-market-value-ai-80e7cd09411edbeff13a2464fa5f1948
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