A prominent hedge fund believes that Google’s one-of-a-kind AI buildout strategy may allow the tech giant to pull ahead of the race.
In a new research update, ARK Invest says Google’s latest Gemini 3 model shows the strength of a vertically integrated AI approach that spans silicon, cloud infrastructure, model architecture and product deployment.
The firm highlighted early benchmark results that placed Gemini 3 ahead of competing frontier models on advanced reasoning and mathematics.
“According to early results, Gemini 3 has surged to the top of multiple frontier model benchmarks, outperforming Anthropic and OpenAI on tests like Humanity’s Last Exam, AIME 2025, and GPQA Diamond. Gemini 3 also topped scores on VendingBench 2.”
ARK points to Google’s in-house tensor processing unit systems as a major competitive lever, noting that Google trains its models on its own accelerator hardware rather than relying on external chip providers. The firm says this integration gives Google tighter control over performance, optimization and scale compared to peers with more fragmented supply chains.
Google’s vertically integrated approach also extends into new agentic and development tools, including its Gemini Agent platform for multi-step tasks and its Antigravity coding environment. ARK says these additions reinforce Google’s full-stack AI positioning as the company advances toward the next era of model competition.
“Google’s combination of infrastructure, research capability, and product integration could make it a dominant force in the next era of AI.”
ARK Invest is not the only firm to voice Google’s competitive advantage. In a new CNBC interview, Laura Martin, a senior internet and media analyst at the billion-dollar investment firm Needham, says OpenAI and Nvidia should now keep a close watch on Google.
“The other point I really need to make about Alphabet they own everything. They own the chips. They own best-in-class consumer data. They own the cloud. They’re totally vertically integrated, and they are a threat to the Nvidia-OpenAI ecosystem because Alphabet does everything itself, away from that big ecosystem we were talking about with Anthropic.”
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