Alphabet’s stock surged as investors reacted positively to the launch of Gemini 3, Google’s latest large language model, signaling renewed confidence in the company’s AI ambitions. With Gemini 3, Google is stepping up its competition against industry leaders like OpenAI, which sparked the generative AI revolution with ChatGPT in 2022, and now offers its advanced GPT-5 model. Other major players, including Anthropic—the creator of the Claude chatbot and Sonnet 4.5—have also gained traction in the rapidly evolving AI landscape. Bank of America Securities analysts praised Gemini 3 as “another positive step” toward closing any perceived performance gap between Google’s AI models and those of its rivals. They noted that strong user adoption metrics for AI Overviews and Gemini indicate Google is effectively drawing users into its AI-powered products, even amid intensifying competition. This momentum, analysts say, should help alleviate concerns about potential disruptions to Google’s core search business. While it’s still early to fully evaluate Gemini 3’s capabilities, initial reviews have been encouraging. The model’s improvements in reasoning, multimodal understanding, and responsiveness have drawn favorable attention from developers and early testers. The positive sentiment around Google’s AI progress coincided with another major catalyst: Warren Buffett’s Berkshire Hathaway disclosed a new stake in Alphabet, marking one of the conglomerate’s largest technology investments in recent years. This move signaled strong institutional confidence in Google’s long-term trajectory. As a result, Alphabet’s shares have climbed more than 55% year-to-date, reflecting growing optimism about the company’s ability to innovate and maintain its dominance in both search and emerging AI markets.