Alphabet reaches $3 trillion valuation as California solidifies its tech leadership

Alphabet Inc., the parent company of Google and other technology businesses, has reached a market capitalization of $3 trillion. This makes Alphabet only the fourth company in history to achieve this valuation milestone.

Governor Gavin Newsom acknowledged the achievement, noting that Alphabet joins Apple and Nvidia—both also based in California—in surpassing the $3 trillion mark. The only other company to reach this level is Microsoft, which is headquartered in Washington.

"Three of the four highest valuation companies in history call California home. This achievement further cements the Golden State as the global epicenter of high-tech innovation — a place where groundbreaking ideas scale into world-changing enterprises," said Governor Newsom.

California is recognized as one of the largest economies globally and remains central to American innovation. According to Governor Newsom, "California, our businesses, and technology ecosystem, drive the nation’s economic growth. Alphabet’s rapid rise to such incredible success is a reflection of our unmatched ecosystem, where research and technology continue to power opportunity."

The state's high-tech sector contributed $555 billion to the U.S. economy in 2024 and supported nearly 1.5 million tech workers across 61,500 tech business establishments. California's academic institutions awarded 25,600 tech-related degrees last year and are home to leading programs in artificial intelligence (AI) and quantum computing at universities including UC Berkeley, UCLA, Stanford University, UCSB, CalTech, and UC San Diego. The state hosts 33 out of the world’s top 50 privately held AI companies and accounts for a quarter of all AI patents, conference papers, and companies.

In August, Governor Newsom announced a partnership with Google, Adobe, IBM, and Microsoft aimed at expanding opportunities in generative AI for students across public high schools and universities throughout California. Existing collaborations with NVIDIA are included in these efforts. Through these initiatives, over two million students will have access to resources needed for an AI-ready workforce.

Earlier this year, California released a report by leading AI academics outlining guidelines for responsible development and use of artificial intelligence within the state.

California remains among the top states for new business starts as well as venture capital funding. It continues to lead nationally in manufacturing and agriculture while seeing population growth and record tourism spending.