Google unveils artificial intelligence model gemini, shares soar by 5%
By Kingsley Odii
Google has recently announced the launch of its revolutionary artificial intelligence model named Gemini, causing its shares to surge by over 5%. With this development, Google is set to compete head-to-head with major players in the AI field such as OpenAI, Microsoft, and Meta.
Google’s stock price rose by more than 5% after introducing its state-of-the-art AI creation, Gemini. This positive response from the market shows high expectations and dismisses previous doubts about Google’s position in AI innovation compared to rivals like OpenAI, Microsoft, and Meta.
Experts from Wells Fargo noted the excitement surrounding Google’s announcement, which signifies significant progress for the company in the AI race. However, the long-term plan for making money from Gemini is still uncertain.
Analysts from Bank of America recognized the pressure Google faced due to its AI capabilities earlier this year. The noted that the introduction of a well-developed model like Gemini could potentially boost Google’s consumer search and Cloud enterprise sales. Indications of Google’s leadership in proprietary AI technology suggest potential benefits for the company’s stock by the first half of 2024.
While investors and analysts are optimistic, the question remains about how Google plans to economically benefit from Gemini. Speculation exists about incorporating the model into various Google products and initially licensing it through Google Cloud.
Microsoft has already capitalized on AI through Copilot, a feature that integrates with key office applications, indicating significant future revenues. Google’s venture into generative AI with Gemini is a notable step forward, but analysts caution that the impact on growth and profitability may not be immediate.
Google is still in the early stages of integrating Gemini into core offerings like Search, indicating a more cautious approach when it comes to connecting emerging AI technology with financial expectations. The anticipation is high, but it’s advised to be patient in assessing the full impact of this technological advance on Google’s financials.
More so, Analysts at Wells Fargo’s trading desk believe that this announcement will put an end to the speculation surrounding Google’s progress in AI. Describing Gemini as a game-changer, the bid for Google’s shares saw an upward trend. However, Wells Fargo also raised concerns about Google’s monetization strategy for Gemini, questioning the company’s ability to derive profits from this innovation.
Additionally, JPMorgan analysts noted that Wall Street responded with indifference to Google’s announcement. Nonetheless, they expressed encouragement at Google’s advancements in this major technological shift. JPMorgan analysts also predicted potential pushback from shareholders due to uncertainty surrounding the monetization path in Search.
With Gemini entering the scene, the competition in the AI arena is expected to reach new heights. OpenAI, a San Francisco startup, and industry rival Microsoft have been engaged in a fierce battle for AI supremacy over the past year. Now, Google’s entry with Gemini promises to shake up the industry even further, leading to exciting developments in the AI landscape.
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