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Alphabet has rapidly gained market share in the AI space with its Gemini LLM.
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Start-up rivals Anthropic and Open AI are leading for now, but they lack Alphabet’s resources; neither is set to turn a profit anytime soon.
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Not only is Alphabet profitable, but it’s also growing incredibly fast and has nearly $100 billion to invest in whatever it needs to come out on top.
Google’s parent company, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), is one of the original Silicon Valley tech giants that have come to dominate the stock market.
It has also emerged as the leader among those original tech giants in artificial intelligence (AI), and it’s eating into the market share of OpenAI, the company that made AI mainstream in the first place with the launch of ChatGPT back in late 2022.
OpenAI might have launched the first large language model (LLM) to achieve mass success, but since its peak 50% market share in the Enterprise LLM API space in 2023, it has fallen to 25% market share.
As reported by Menlo Ventures, OpenAI has been totally eclipsed by its start-up rival Anthropic, which has secured 32% market share with its Claude LLM. And Google‘s Gemini isn’t far behind it at 20% market share.
But despite Claude’s rise to prominence, I think Gemini will win out in the Enterprise AI market for the simple reason that it has Alphabet behind it. Anthropic is still a start-up with all the weaknesses that come with that. Sure, Anthropic is set to achieve profitability in 2028, a full two years ahead of OpenAI, but Alphabet is already profitable. It also has incredibly vast resources to invest in AI development. Here’s what I mean.
We all love an underdog story of a little guy overcoming a giant, right? Well, investing is another story, and that story’s not Rudy. Barring a miracle for OpenAI or Anthropic, Alphabet is a giant that neither can realistically overcome.
For its latest results, for the third quarter of 2025, Alphabet reported revenue of $102.3 billion, up 16% over Q3 2024. Net income totaled $34.9 billion, up 33% over Q3 2024. And diluted earnings per share (EPS) grew by 35% over Q3 2024. On the cash front, Alphabet’s free cash flow came in at $24.4 billion, up 39% over Q3 2024. The company also holds $98.5 billion in cash, which is enough to pay off its entire debt of $44.2 billion twice.
And while profitability for its start-up rivals is still years away at best, Alphabet is running a 59% gross margin and a 32% net income margin.
