Key Points
-
Alphabet’s Gemini artificial intelligence (AI) is capturing market share from ChatGPT, increasing from 7% to 21% since 2022, while ChatGPT has dropped from 50% to 27%.
-
The company reported $400 billion in revenue for 2025, with net income of $132.1 billion, a 32% increase from 2024.
-
Alphabet plans to double its capital expenditures to $175-$185 billion in 2026 to enhance its AI capabilities.
Alphabet (NASDAQ: GOOG, GOOGL) is rapidly positioning itself as a leader in artificial intelligence, primarily through its Gemini AI, which is on track to surpass ChatGPT this year if the current trends persist. Competitive advancements in AI have allowed Alphabet to carve out a significant 21% market share, while ChatGPT’s share has fallen to 27%.
Financially, Alphabet is thriving, reporting $400 billion in revenue for 2025, reflecting a 15% increase from 2024. The company’s net income also saw a significant rise, totaling $132.1 billion. To expand its AI infrastructure, Alphabet is poised to double its capital expenditures by 2026 to between $175 and $185 billion, further solidifying its competitive edge in the AI sector.
