Google shares surged by 5% following the company’s unveiling of its latest artificial intelligence marvel, Gemini, a model positioned to rival offerings from OpenAI, Microsoft, and Meta.
Gemini’s Leap: A 5% Boost in Google Shares:
In a remarkable turn of events, Google’s stock saw a 5% uptick on Thursday, signaling investor enthusiasm after the announcement of Gemini, the tech giant’s cutting-edge AI model. This surge marked the best day for Google since August 29, prompting positive responses from analysts who noted its potential to quell doubts about Google’s standing in the AI landscape.
Google’s Bold Claim: Gemini Outperforms GPT-3.5:
Google executives boldly asserted that Gemini outperforms OpenAI’s GPT-3.5, positioning it as a formidable competitor in the AI domain. However, intriguingly, details on how Gemini compares to OpenAI’s latest iteration, GPT-4, were conspicuously absent. Despite this, the market response suggests that is creating a pre-market buzz for Google.
The Monetization Conundrum: Awaiting Google’s Strategy:
While the market celebrates Google’s strides in AI, questions linger about the company’s long-term monetization plan for Gemini. Analysts are keen to understand how Google intends to capitalize on this innovative technology, and whether it will be integrated across all its products. The announcement has spurred speculation about the monetization path, with the trading community eagerly awaiting further details.
Gemini’s Potential Impact on Google’s Earnings:
Analysts at Bank of America highlight the pressure Alphabet has faced regarding Google’s AI capabilities. They anticipate positive outcomes for Google’s consumer search activity and Cloud enterprise sales, emphasizing the potential boost in shares in the first half of 2024. However, the crucial question remains: What will be the tangible impact on Google’s bottom line?
Licensing Launch: Google Cloud Takes the Lead:
While the monetization strategy unfolds, Google is set to take the first step by licensing Gemini to customers through Google Cloud later this month. The move indicates Google’s initial foray into making it commercially available and paves the way for potential widespread adoption across various sectors.
Analysts Perspectives: Encouragement Amidst Uncertainty:
Amid the market excitement, analysts express optimism about Google’s strides in the AI arena. JPMorgan analysts commend the innovation but acknowledge concerns over the uncertainty of Gemini’s monetization path in the search domain. KeyBanc suggests that while Gemini represents the culmination of Google’s AI announcements, its true impact on growth and profitability may take time to materialize.
Google’s unveiling of Gemini has sparked a notable uptick in its stock value, showcasing the market’s positive reception. As takes its initial steps into commercialization through Google Cloud, the industry watches with anticipation to see how this cutting-edge AI model will shape Google’s future.