Alphabet’s stock (NASDAQ: GOOGL, NASDAQ: GOOG) rose over 4% this week due to increased investor interest in its AI initiatives. The company announced a partnership with Midjourney, utilizing Google Cloud for AI models. New generative AI features for Gmail and Google Docs were also revealed, with further AI tools in development.

Alphabet’s shares dipped previously after Microsoft’s AI announcements, but a recent rally suggests confidence in Alphabet’s ability to compete. Despite Microsoft’s new AI features for its productivity software, investors seem optimistic about Alphabet’s AI capabilities. This positive sentiment could lead to more gains for Alphabet’s shareholders in the future.

Read more at Nasdaq: Why Alphabet Stock Climbed Today