Alphabet, the parent company of Google, has quickly increased its market share in artificial intelligence with its Gemini large language model. According to recent reports, Gemini now holds 20% of the enterprise LLM API market.
Start-up competitors Anthropic and OpenAI currently lead the market, but both face significant financial challenges. Anthropic has secured 32% market share with its Claude LLM, while OpenAI's share has dropped from 50% in 2023 to 25% currently. Neither company is expected to achieve profitability in the near future.
Alphabet reported strong financial results for the third quarter of 2025. Revenue reached $102.3 billion, representing a 16% increase over the same period in 2024. Net income totaled $34.9 billion, up 33% year-over-year. The company maintains a 59% gross margin and 32% net income margin.
The company holds $98.5 billion in cash and generated $24.4 billion in free cash flow during the quarter. This financial strength allows Alphabet to invest heavily in AI development without relying on external funding.
Recent infrastructure investments include a 25-year power purchase agreement with NextEra Energy to revive the Duane Arnold Energy Center in Iowa. The agreement specifically aims to provide additional electricity for Alphabet's data centers in the region.
In December 2025, Alphabet acquired Intersect, a data center energy infrastructure company, for $4.75 billion. The acquisition represents a relatively small expenditure for a company of Alphabet's size.
While Anthropic projects profitability by 2028 and OpenAI faces even longer timelines, Alphabet's established profitability and substantial resources create a significant competitive advantage in the enterprise AI market.