Google shares rose more than 5 after Gemini neural network

Google shares rose more than 5% after Gemini neural network announcement

This week, Google introduced a large language model called Gemini, which is expected to become the main competitor to OpenAI’s GPT-4 in the future, and products based on it will become competitors to Microsoft’s AI services. For the company’s securities, December 7th was the best day since August 29th, when shares rose more than 5% to $136.93.

    Image source: Google

Image source: Google

A sales representative at bank holding company Wells Fargo said the announcement of the Gemini neural network should be enough to appease skeptics who believe Google is losing the artificial intelligence race to Microsoft. He also pointed out that the big question is how the company views monetizing its neural network.

Analysts at Bank of America noted that Alphabet has been under pressure this year due to concerns about Google’s artificial intelligence capabilities. For this reason “Well supported” A competitive model could have benefits for consumer search activity and enterprise cloud sales. “We believe Google has strong AI capabilities, and demonstrating that Google has world-class AI capabilities could be positive for the stock in the first half of 2024.”say analysts.

It’s unclear whether Google plans to monetize Gemini across all of its products long-term, although the company will begin licensing customers’ use of the algorithm through Google Cloud as early as this month. Google executives said Gemini outperformed OpenAI’s GPT 3.5 algorithm, but did not provide comparative data with the GPT 4 Turbo model. However, Gemini shows that there is scope for further monetization of AI.

For example, Microsoft recently launched the ChatGPT-based AI assistant Copilot, which integrates with Word, Excel and other applications in the company’s Office suite and costs $30 per month per user. In October, analysts at Piper Sandler said Copilot could bring Microsoft annual revenue of more than $10 billion by 2026.

JPMorgan analysts said that while Wall Street investors were largely turned off by Google’s announcement, they were encouraged to see Google do so “This important technological change”. However, you acknowledge this “Uncertainty about monetization paths in search” will take place. They believe the launch of Gemini represents a significant innovation for Google as the company soon enters its second year of commercialization and widespread adoption of neural network-based generative algorithms.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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