The AI wave is still surging! From Buffett's "last dance" to the stunning debut of Gemini 3, Google lifts up the "AI bull market narrative"

American technology giant Alphabet Inc. Class C (GOOGL.US) announced the launch of an upgraded version of their artificial intelligence model Gemini 3 on Tuesday, nearly eight months after the release of Gemini 2.5. The new model, Gemini 3, is a significant upgrade in their competition with ChatGPT developer OpenAI, and was immediately launched on Alphabet Inc. Class C search, Gemini application ecosystem, and multiple developer platforms on its release day. It has been integrated into several profit-generating products under Alphabet Inc. Class C. Alphabet Inc. Class C stated that Gemini 3 is in a leading position on multiple popular industry rankings for AI model performance, and has set records in various dimensions such as mathematics, multimodal understanding, and factual accuracy among large models in the industry. The company mentioned that the new AI applications based on their large model will require users to provide fewer prompts to achieve their desired results. They also introduced a new AI intelligence platform called "Google Antigravity" for developers to code AI at a higher task-focused level. Gemini 3 topped the global AI model LMArena ranking with a historical high score of 1501, and achieved the highest score of 37.5% in the Humanity's Last Exam benchmark test for measuring general reasoning ability, surpassing the previous record held by GPT-5 Pro at 31.64%. It also demonstrated a doctoral-level performance in multiple academic benchmarks, scoring 91.9% in the GPQA Diamond test, setting a new record of 23.4% in the MathArena Apex benchmark test, and achieving a score of 72.1% in the SimpleQA Verified test for factual accuracy, all surpassing GPT-5.1 by a significant margin. Therefore, Alphabet Inc. Class C has truly ushered in the "Gemini AI era", overshadowing ChatGPT in the AI field. This further confirms that Warren Buffett's last move to invest in Alphabet Inc. Class C was a perfect tech investment choice, as the recent market interest in Alphabet Inc. Class C has even surpassed NVIDIA Corporation, making it a prominent player in the AI super bull market. Gemini 3 was launched on the first day and immediately integrated into the search engine, AI application ecosystem, and developer platforms. It is available to some subscription users and will be rolled out more widely in the coming weeks. This marks Alphabet Inc. Class C's commitment to accelerating the commercialization of AI technology. The release of Gemini 3 comes after about eight months since the launch of Gemini 2.5 and eleven months since the launch of Gemini 2.0, marking a breakthrough update iteration. OpenAI ignited a global generative AI craze at the end of 2022 with the first public release of ChatGPT, and introduced GPT-5 in August this year. Alphabet Inc. Class C CEO Sundar Pichai stated that the new AI model will allow users to obtain better answers to more complex problems with fewer prompts. The company emphasized that their other AI large models can still be used for simpler tasks. Alphabet Inc. Class C and other major tech giants are increasing their AI expenditures, especially in building the massive AI computing infrastructure needed for AI development/inference systems. In the past month's earnings disclosures, Alphabet, Meta, Microsoft Corporation, and Amazon.com, Inc. have all significantly raised their AI capital expenditure guidance, with a total expected expenditure of over $380 billion this year. Alphabet Inc. Class C stated that AI responses powered by Gemini 3 will provide high-quality insights without clichs, delivering what users need to hear rather than what they want to hear. This approach was emphasized by Demis Hassabis, CEO of Alphabet Inc. Class C's AI division DeepMind. Critics in the industry have long regarded today's AI chatbots as overly flattering. Recently, the AI unicorn OpenAI updated GPT-5 in two versions, with one being "warmer, smarter, and better at following your instructions" and the other being "faster on simple tasks and more enduring and accurate on complex tasks". Alphabet Inc. Class C also introduced a new AI intelligence platform called "Google Antigravity" to allow developers to code AI at a higher and task-oriented level. Josh Woodward, Vice President of Google Labs and Gemini at Alphabet Inc. Class C, described Gemini 3 as the company's "best-ever vibe coding model". Vibe coding refers to a fast-growing market of development tools that generate real code based on prompts. The new model supports a "generative interface" in the Alphabet Inc. Class C search engine's AI Mode, initially for paid subscribers. It can analyze a full question and create search formats with visual elements such as images, tables, and grids. Alphabet Inc. Class C stated that it can create a customized interactive loan calculator or an interactive simulation for complex physics problems. Developers will have access to the AI large model through the Gemini API, while enterprise developers can integrate it through Vertex AI, a comprehensive AI cloud computing service ecosystem built by Alphabet Inc. Class C for building, deploying, and managing AI large models. Alphabet Inc. Class C mentioned that Gemini 3 can help enterprise clients create employee onboarding and training content, analyze dynamic images and videos of factory workshops more accurately, and handle procurement tasks. Alphabet Inc. Class C's recent release of AI products based on Gemini 3 is expected to drive significant AI computing demand, reinforcing the narrative of the "AI super bull market". Warren Buffett's recent investment in Alphabet Inc. Class C has been seen as a significant endorsement of the company and its position in the AI market, further solidifying Alphabet Inc. Class C's strong performance in the tech sector. In the third quarter of 2025, Alphabet Inc. Class C significantly increased their capital expenditure for the year to $910-930 billion, with further increases expected in 2026. Google Cloud, a segment under Alphabet Inc. Class C, recorded a 34% year-on-year revenue increase to $15.2 billion, highlighting the strong demand for cloud-based AI computing infrastructure and generative AI solutions. Alphabet Inc. Class C also saw a significant increase in token processing from 980 trillion in July to over 1.3 quadrillion, indicating a robust AI monetization trajectory. The Q3 performance report also showed a 46% increase in Google Cloud computing order backlog, reaching $155 billion, indicating a substantial pipeline of cloud computing and AI computing projects to be executed in the coming years, requiring larger AI data center capacities worldwide to fully digest.