Google Shares Jump 5% on New AI Model

Shares of Google finished up 5% higher on Thursday, after the technology giant announced its latest artificial intelligence model. Gemini, as the model is called, is being billed as a direct competitor to products from OpenAI, Microsoft, and Meta.

Parent company Alphabet has come under pressure from concerns over Google’s lagging AI capabilities, after smaller rivals like OpenAI and peers like Microsoft got a healthy head start.

Analysts remain keen to learn how Google plans to monetize the new AI model across its product family. Google said it will start licensing Gemini to customers through Google Cloud before the year is out.

Google executives have claimed that Gemini is superior to OpenAI’s GPT-3.5 chatbot. However, is stopped short of sharing how it fares against OpenAI’s latest model GPT-4 Turbo.

Other companies are powering ahead with their AI models. Microsoft’s recently launched Copilot, which hasOpenAI’s ChatGPT under its hood, is now integrated in Word, Excel and other Office programs. Analysts contend that Copilot could add more than $10 billion in annualized revenue for Microsoft by 2026.

The Gemini launch is an important development for Google as we roll over into the second year of commercialized and widely distributed Generative AIproducts.

Gemini is slated to find its way into core Google products like search. Analysts are cautiously optimistic about its potential, but warn that it will take some time for the product to alter advertiser, consumer, and enterprise habits.