Nvidia<\/a> for its hardware needs with its Tensor Processing Unit (TPU) chip.<\/p>\nThird, per its latest results, Alphabet is leveraging its considerably greater resources than the competition.<\/p>\n
Let’s discuss all three to illustrate why Alphabet is positioning itself to become the AI kingpin by the end of 2027.<\/p>\n
![\"The](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1770645503_435_.jpeg\"\/)
<\/p>\n
Image source: Getty Images.<\/p>\n
Gemini, Google that for me<\/p>\n
When OpenAI launched ChatGPT in 2022, it quickly became the leader in the generative AI space simply for lack of competition.<\/p>\n
By 2023, competitors like Alphabet, Anthropic, and Meta Platforms had brought their competitors to market, but ChatGPT still held 50% market share in the enterprise large language model (LLM) space.<\/p>\n
As reported by Menlo Ventures, in the two years since, ChatGPT fell to 27% market share, Anthropic grew from 12% to 40% market share, and Google’s Gemini grew from 7% to 21%.<\/p>\n
It’s on a trajectory to overtake ChatGPT this year if current trends continue, and then it will be a race to the top between Google and Anthropic. Even then, Google wins.<\/p>\n
Not a one-trick pony<\/p>\n
In addition to Gemini, Alphabet has its own proprietary AI hardware, the TPU, developed in partnership with Broadcom.<\/p>\n
I won’t get into the weeds technically here, but suffice it to say Alphabet’s TPU offers a hardware alternative to Nvidia’s GPU. And Anthropic is expanding its use of Alphabet’s hardware to the tune of 1 million TPUs.<\/p>\n
So, Google even wins from Gemini’s main competitor because that competitor will be using a lot of Google’s hardware.<\/p>\n
Money, money, money<\/p>\n
Now, on to the $400 billion elephant in the room. Alphabet’s biggest edge is that while neither OpenAI nor Anthropic has turned a profit yet, it is already profitable, and its revenue for 2025 exceeded $400 billion. That’s a 15% increase over 2024. Net income was up 32% over 2024 to $132.1 billion.<\/p>\n
None of that was particularly surprising. Google has been growing and profitable for a long time. What did surprise people was the fact that the company is going to roughly double its capital expenditures in 2026 to $175 billion to $185 billion.<\/p>\n
![\"Alphabet](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1770645503_477_.png\"\/)
<\/p>\n
Today’s Change<\/p>\n
(-2.48%) $-8.23<\/p>\n
Current Price<\/p>\n
$323.10<\/p>\n
Key Data Points<\/p>\n
Market Cap<\/p>\n
$3.9T<\/p>\n
Day’s Range<\/p>\n
$320.15 – $330.64<\/p>\n
52wk Range<\/p>\n
$142.66 – $350.15<\/p>\n
Volume<\/p>\n
408K<\/p>\n
Avg Vol<\/p>\n
24M<\/p>\n
Gross Margin<\/p>\n
59.68%<\/p>\n
Dividend Yield<\/p>\n
0.26%<\/p>\n
Building data centers isn’t cheap, and neither is maintaining them. But Alphabet has way more money to spend on them than just about anyone else — certainly more than the start-ups.<\/p>\n
And if it can hold near its 59.6% gross margin and 32% net and operating margins, I’m not too worried about more spending. Plus, liquid cash to fuel that spending spree will not be a problem. In Q4 2025, the company grew its operating free cash flow 34% to $52.4 billion.<\/p>\n
Alphabet is betting big on AI and clearly aiming to dominate the industry. And it has the money, products, and reach to pull it off, by my reckoning.<\/p>\n
Give it a look if you want to go big on AI like Alphabet is, and come 2027, we’ll see who sits atop the AI throne.<\/p>\n","protected":false},"excerpt":{"rendered":"Alphabet is already one of the most valuable companies in the world, but it’s betting big on being…\n","protected":false},"author":2,"featured_media":275257,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-275256","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/275256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=275256"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/275256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/275257"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=275256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=275256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=275256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}