Gemini AI boosts Alphabets stock as Google seeks to regain AI ...
Alphabet recorded a 5.3 per cent surge in its shares on Thursday as Wall Street celebrated the debut of Google's Gemini AI, marking a significant leap in the tech giant's quest to regain dominance in the artificial intelligence sector, Reuters reported.
Gemini is poised to close the gap with Microsoft-backed OpenAI, according to analysts. Alphabet's renewed focus on AI innovation comes after it temporarily lost ground to OpenAI's ChatGPT last year, allowing Microsoft to seize the initiative in deploying AI-powered software to businesses.
The Gemini AI model has garnered attention for its potential to outpace OpenAI's latest offering. Alphabet emphasised Gemini's speed and its capability to process various media formats, including video, audio, and text.
J.P. Morgan analysts noted that the launch of Gemini addresses investor concerns about the high costs associated with running generative AI models, showcasing Google's commitment to innovation in the AI landscape. The company's market value surged by over $80 billion, signalling a positive market response to Gemini's capabilities.
In response to Gemini's release, Google's parent company intends to alleviate concerns raised by OpenAI users who have expressed dissatisfaction with recent updates affecting the quality of GPT model output. Macquarie analysts see the potential for Gemini to surpass the capabilities of GPT-4, providing Google with a competitive edge and attracting users and developers.
Additionally, some of Gemini's technology has been integrated into Alphabet's Bard chatbot, with plans to unveil the most advanced Gemini version through Bard early next year.
A six-minute video showcasing Gemini's capabilities highlighted its proficiency in recognising sleight-of-hand magic tricks and assisting users in creating art by suggesting ideas based on materials and colours. This demonstration highlights Gemini's versatility in handling diverse tasks, from entertainment to creative work.
Despite Alphabet's leadership in AI research, Microsoft has maintained a lead in the race for AI-driven cloud revenue. Google Cloud's growth slowed in the September quarter, prompting Alphabet to refocus its efforts on reclaiming market share. Microsoft's strategy of targeting established businesses contrasts with Google's approach of engaging startups, which have limited spending capacity in an uncertain economic environment. Both companies have experienced significant stock rallies this year, driven by the broader surge in big technology stocks fuelled by AI advancements.
Reuters cited Ken Mahoney, the CEO of Mahoney Asset Management in New Jersey, who acknowledged that some criticism might label Google as late to the AI party. However, he emphasised that Google's commitment to getting it right and seizing its opportunity in the AI space, positions Gemini as a crucial driver for the company's growth.
(With inputs from Reuters)
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