In the early months of 2025, investors began to harbor doubts regarding Alphabet's stock performance. They questioned whether Google could hold its own against OpenAI in the fierce AI race. Nevertheless, by the close of the year, Alphabet's stock had soared, marking its most impressive performance since 2009. Google's remarkable resurgence in the AI arena can be largely credited to its acquisition of DeepMind.

In March 2025, with the launch of Gemini 2.5, Google AI regained its momentum. The Gemini model, a brainchild of DeepMind, was swiftly integrated into products like Google Search. Then, in November 2025, Gemini 3.0 made its debut, achieving a sweeping lead in multimodal benchmark tests. This breakthrough not only propelled Google Search's market share back above the 90% mark but also triggered a simultaneous upswing in its advertising and cloud sectors.

Furthermore, Google took a bold step by bypassing the traditional Scale-up phase. Instead, it embraced optical circuit switching technology to facilitate Scale-out expansion. This innovative approach allowed a single cluster to support the interconnection of an astounding 9,216 TPU pods. The total computing power of this cluster far outstripped that of NVIDIA's comparable offerings, solidifying Google's position as a frontrunner in the AI race.