Alphabet, the parent company of tech giant Google, has reached a major milestone by achieving a $2 trillion market capitalization. This makes Alphabet the world’s fourth most valuable public company, a title it had only briefly held in the past.
The breakthrough came after Alphabet sustained a full day of trading above the $2 trillion mark for the first time on Friday. This success was fueled by Alphabet’s impressive first-quarter earnings report, which exceeded analysts’ expectations. The revenue surge was largely driven by the continued success of Google’s search engine and the growing popularity of Google Cloud’s generative AI services.
CEO Sundar Pichai highlighted Alphabet’s focus on AI innovation and announced plans to expand the stock repurchase program by $70 billion. Despite facing criticism over its AI offerings, such as the controversial image generator, Alphabet is committed to doubling down on AI as a key driver of growth. In fact, the company announced the development of its own central processing unit called Axion.
However, Alphabet has not been without its challenges in the AI space, as it has experienced growing pains with some of its offerings. Despite this, the company did not immediately respond to requests for comment on these issues. Overall, Alphabet’s $2 trillion market cap milestone marks a significant achievement for the tech industry and solidifies its position as a leader in AI innovation.
