Google shares experienced a 5% boost on Thursday following the announcement of the company’s latest artificial intelligence model, Gemini.
The surge marks the most favorable day for Google’s stock since August 29, positioning the tech giant to compete fiercely with AI models from industry heavyweights OpenAI, Microsoft, and Meta.
Project Gemini, unveiled on Wednesday, represents Google’s leap into the realm of advanced artificial intelligence.
The model, designed to emulate human-like behavior, is expected to fuel discussions about the potential benefits and risks associated with this cutting-edge technology.
While Google chose not to disclose Gemini’s parameter count, a key measure of model complexity, a white paper published on December 6 highlighted the superior performance of Gemini’s most capable version over GPT-4 in assessments like multiple-choice exams and grade-school math.
Despite this success, Google acknowledged the ongoing challenges in enabling AI models to attain higher-level reasoning skills.
Analysts from Wells Fargo’s trading desk noted that Gemini’s announcement should dispel concerns about Google’s position in AI, causing a positive response in the market.
However, questions lingered about Google’s monetization strategy for Gemini, emphasizing the need for the tech giant to prove its sustained relevance.
JPMorgan analysts expressed encouragement for Google’s strides in this significant technological shift but anticipate potential pushback due to uncertainties around Gemini’s monetization path in Search.
As Gemini enters the arena, the AI competition, marked by escalating rivalries with OpenAI and Microsoft, is set to intensify.