Alphabet Edges Closer To $4 Trillion Market Cap On Growing Optimism Around Google’s AI Prowess

• The talks between Meta and Alphabet-owned Google also involve renting chips from the latter.
• A report by The Information states that some Google Cloud executives expect the company to help it capture up to 10% of Nvidia’s annual revenue.
• The AI bellwether reported $130.5 billion in revenue in 2024 and is expected to report $212.6 billion in revenue in 2025, according to Stocktwits data.

Alphabet Inc.’s (GOOG, GOOGL) market capitalization edged closer to $4 trillion amid renewed enthusiasm about the company’s prospects in the artificial intelligence sector.

This comes after The Information reported that Meta Platforms Inc. (META) is in talks with Google to purchase Google’s Tensor Processing Units (TPUs).

Alphabet’s Class A shares gained more than 3% on Tuesday before paring some of the gains. At the time of writing, the Alphabet’s Class A shares were up more than 1%, with the company’s market capitalization at $3.907 trillion. Retail sentiment around the company trended in the ‘extremely bullish’ territory at the time of writing.

Meta TPU Deal

According to a Reuters report citing The Information, the talks between Meta and Alphabet-owned Google also involve renting chips from the latter. Meta is expected to begin using Google’s TPU chips in its data centers starting in 2027.

The report stated that some Google Cloud executives expect the company to help it capture up to 10% of Nvidia’s annual revenue. The AI bellwether reported $130.5 billion in revenue in 2024 and is expected to report $212.6 billion in revenue in 2025, according to Stocktwits data.

Meta has planned up to $72 billion in capital expenditure for this year.

Gemini 3

Last week, Google took the wraps off its latest AI model, Gemini 3, adding to the growing optimism about the search giant’s AI prowess. Since Gemini 3’s launch on November 18, the GOOGL stock is up by more than 16%.

In an announcement, Google stated that Gemini 3 will allow users to get what they “need” with less prompting, thanks to its reasoning capabilities designed to grasp depth and nuance in user queries.

GOOGL stock is up 71% year-to-date and 93% over the past 12 months.

Also See: David Sacks Clarifies He Remains Opposed To AI Bailouts After Saying Reversal In Investments Would Risk Recession

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