New York, Jan 12, 2026, 16:47 EST — After-hours
- Alphabet’s non-voting Class C shares (GOOG) climbed roughly 1.1% in late trading.
- Apple has struck a multi-year deal to power a revamped Siri using Google’s Gemini models.
- Investors now turn to Alphabet’s Feb. 4 earnings and its outlook on AI spending.
Alphabet’s non-voting Class C shares (GOOG) climbed 1.1% to $332.73 in after-hours trading Monday following Apple’s announcement that it will integrate Google’s Gemini models into a revamped Siri under a multi-year agreement. (Reuters)
Alphabet’s market value briefly hit $4 trillion during regular trading, Reuters reported, joining the ranks of Nvidia, Microsoft, and Apple. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, praised the company for “innovation” as it moves past its usual business model. (Reuters)
The timing matters because Apple is a powerhouse for distribution. Plugging Gemini into its ecosystem hands Alphabet a reach most AI developers can’t buy. Plus, earnings are just weeks off, putting pressure on the company to show that its AI investments are generating revenue—not just racking up expenses.
Apple aims to embed Google’s models behind a beefed-up Siri by year-end, deepening Alphabet’s reach within the iPhone maker’s AI framework. (The Guardian)
Google said Apple chose its technology after a “careful evaluation,” calling it the “most capable foundation” for Apple’s foundation models. Gemini is also expected to back other Apple Intelligence features. Parth Talsania, CEO of Equisights Research, suggested this move relegates OpenAI’s ChatGPT to a “supporting role” for complex, opt-in queries, making Gemini the default layer. Tesla CEO Elon Musk slammed the deal as an “unreasonable concentration of power” for Google in a post on X. (Investing)
Alphabet’s revised narrative is paying off in the market: AI models combined with a cloud business supplying the essential tools. Google Cloud’s revenue jumped 34% in the third quarter, while its backlog of contracted sales—future billings not yet recognized as revenue—climbed to $155 billion, Reuters reported via Yahoo Finance. (Yahoo Finance)
Among the mega-caps, action was uneven late in the session. Microsoft slipped around 0.4%, while Meta dropped close to 1.7%.
However, the Apple deal carries some risks. It could invite increased regulatory and political scrutiny since Apple already defaults to Google as its search engine. This new AI partnership only deepens that reliance.
Execution risk is also on the table. Should Apple’s Siri rollout face another delay, or if users reject the pricing and delivery of AI features, the “distribution win” argument quickly loses traction — while Alphabet still needs to prove it can boost ad revenue despite hefty AI infrastructure expenses.
Investors are focused on Alphabet’s Q4 earnings and conference call set for Feb. 4. They want clarity on spending, cloud growth, and the pace at which Gemini is converting to paid users. (Alphabet Investor Relations)
Traders will also be watching Europe’s review timeline for Alphabet’s $32 billion bid to acquire Wiz. According to a filing on the European Commission’s website, regulators are set to make a decision by Feb. 10, Reuters reported. (Reuters)
