Since the launch of ChatGPT three years ago, analysts and technologists — even a Google engineer and the company’s former chief executive — have declared Google behind in the high-stakes race to develop artificial intelligence. Not anymore.
The internet giant has released new AI software and struck deals, such as a chip tie-up with Anthropic PBC, that have reassured investors the company won’t easily lose to ChatGPT creator OpenAI and other rivals. Google’s newest multipurpose model, Gemini 3, won immediate praise for its capabilities in reasoning and coding, as well as niche tasks that have tripped up AI chatbots. Google’s cloud business, once an also-ran, is growing steadily, thanks in part to the global rush to develop AI services and demand for compute.
And there are signs of rising demand for Google’s specialized AI chips, one of the few viable alternatives to Nvidia’s dominant gear. A report on Monday that Meta Platforms is in talks to use Google’s chips sent shares of its parent, Alphabet, soaring. The stock has added nearly $1 trillion in market capitalization since mid-October, helped by Warren Buffett taking a $4.9 billion stake during the third quarter and broader Wall Street enthusiasm for its AI efforts. The company is on track to hit a $4 trillion market capitalization for the first time. SoftBank Group, one of OpenAI’s biggest backers, fell to a two-month low on Tuesday on worries about the competition from Google’s Gemini. Nvidia shares fell as much as 5.51% on Tuesday, erasing $243 billion in market value.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.