Alphabet stock surged 3% on Wednesday after Google unveiled its latest AI model, Gemini 3, building on its predecessor Gemini 2.5. The model improves understanding of complex questions and requires less prompting to grasp context and intent. Gemini 3 will be integrated into Google Search, the Gemini app, and enterprise services. Analysts at D.A. Davidson called it a “genuinely strong model” and “state-of-the-art,” while Bank of America Securities highlighted it as a step toward closing any performance gap with AI competitors like OpenAI’s GPT-5 and Anthropic’s Claude models. The launch comes alongside Warren Buffett’s Berkshire Hathaway disclosing a new stake in Alphabet, contributing to investor optimism. Alphabet shares are up more than 55% this year.