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Alphabet’s Gemini 3 AI Boosts Stock, Hits New Highs

Alphabet launches Gemini 3 AI model, sees stock soar with Berkshire Hathaway investment and boosts 2025 AI data center spending to $92 billion

  • Alphabet launched Gemini 3, its newest AI model, directly integrating it into its search engine.
  • The model leads several industry AI performance rankings, described as the company’s “most intelligent” to date.
  • Berkshire Hathaway bought nearly 18 million Alphabet shares, contributing to the stock hitting a new all-time high.
  • Alphabet increased its 2025 spending forecast on AI data centers for Google Cloud to $92 billion.

Alphabet shares rose slightly Tuesday following the release of Gemini 3, the company’s latest Artificial Intelligence (AI) model. Gemini 3 includes new features and is immediately available in revenue-generating products, such as Alphabet‘s search engine. According to [CEO Sundar Pichai], it is “our most intelligent model” yet, and [Google’s chief AI architect Koray Kavukcuoglu] noted the speed of availability as a new company milestone.

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The Gemini platform competes with Microsoft’s 365 Copilot. Unlike previous Gemini versions, which took weeks or months to integrate into products, Gemini 3 was launched in Google Search on the first day. Gemini 3 also holds leading rankings on multiple industry AI model performance leaderboards.

Shares of Alphabet reached a record high in the wake of a major investment by Berkshire Hathaway. The conglomerate, led by CEO Warren Buffett who plans to retire this year, purchased approximately 17.85 million shares of Alphabet, totaling about $4.93 billion based on the recent closing price.

Following strong third-quarter earnings, Alphabet updated its artificial intelligence data center spending plan for 2025. The company expects to invest $92 billion in Google Cloud infrastructure, an increase from the prior projection of $85 billion. This reflects the growing emphasis on AI within Alphabet‘s overall business strategy.

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