Alphabet’s Market Cap Soars Past $4 Trillion on Landmark Apple AI Deal

Alphabet Inc. has solidified its position at the pinnacle of global business, becoming only the fourth company ever to achieve a market valuation exceeding $4 trillion. This historic milestone was propelled by a strategic partnership announced on January 12th, a move that realigns competitive dynamics in the artificial intelligence sector: a collaboration with its long-time rival, Apple.

The core of the agreement centers on Google's Gemini AI model. Gemini is set to power the next generation of Apple's Siri voice assistant and serve as the foundation for Apple's upcoming "Foundation Models." For Alphabet, this represents a monumental distribution victory, granting its AI technology direct access to Apple's ecosystem of over 2.2 billion active devices worldwide.

Financial terms, while not fully disclosed, are reported to include estimated annual payments to Alphabet reaching $1 billion. Market experts view the alliance as a powerful endorsement of Google's technological leadership in AI. Apple itself publicly referred to the technology as the "most capable foundation" for its future AI features.

Cloud Division Provides Solid Fundamental Backing

Beyond the headline-grabbing Apple deal, Alphabet's core operations continue to demonstrate robust strength. The Google Cloud segment is a particular standout, reporting a 34% year-over-year revenue increase to $15.2 billion for the third quarter. Even more impressive is the division's backlog of committed contracts, which surged 82% to $155 billion.

Should investors sell immediately? Or is it worth buying Alphabet?

CEO Sundar Pichai highlighted that in the first nine months of 2025, the company secured more large-scale deals valued above $1 billion than it had in the previous two years combined.

Analysts Raise Targets on Strengthened Outlook

Wall Street has responded to these developments with widespread optimism. Major financial institutions have revised their price targets upward. Goldman Sachs increased its target to $375 on January 13th, suggesting significant potential upside from current levels. Similarly, J.P. Morgan set a $385 target, and Bank of America also raised its expectations. Currently, more than 85% of covering analysts recommend buying the stock.

Alphabet shares are trading near $333, close to their recent 52-week high of $335.97. The equity has delivered an impressive 77.69% return over the past twelve months.

With the practical integration of Gemini into a planned Siri upgrade expected later this year, the Apple partnership is just beginning. Coupled with the record-breaking cloud contract backlog, Alphabet possesses a formidable foundation to justify and support its unprecedented $4 trillion valuation in the quarters ahead.