Google’s share price increase by 5% after announcement of new AI model
Google’s shares surged over 5% on Thursday, following the announcement of its newest artificial intelligence model named Gemini.
This development positions Google to compete with other AI models from OpenAI, Microsoft, and Meta.
The stock is set for its most favourable day since Aug. 29.
Recently, Google leapt further in artificial intelligence with the introduction of Project Gemini. This AI model, trained to exhibit human-like behaviour, is expected to amplify discussions surrounding the technology’s potential benefits and risks.
During a virtual press conference, Google chose not to disclose Gemini’s parameter count, a singular but not exclusive measure of a model’s complexity.
A white paper, published on December 6, detailed the superior performance of the most capable version of Gemini over GPT-4 in various assessments such as multiple-choice exams and grade-school math.
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However, it also acknowledged the ongoing challenges in enabling AI models to attain higher-level reasoning skills.
Wells Fargo’s trading desk noted that the announcement “should be enough to quiet down the ‘where is GOOG on AI’ chatter” and that Gemini “is causing a pre-mkt bid to GOOGL this morning as sell-side notes read positive.”
However, Wells Fargo’s trading desk also raised a significant question about Google’s monetization strategy for Gemini. “In short, I’d summarize GOOG as proving that they still have some bite.”
JPMorgan analysts stated that, while Wall Street “mostly yawned” at the announcement on Wednesday, they are “encouraged” by Google’s advancements in “this major technology shift.”
However, they also anticipate pushback due to “uncertainty around the monetization path in Search.”
Gemini’s arrival is likely to up the ante in an AI competition that has been escalating for the past year, with San Francisco startup OpenAI and long-time industry rival Microsoft.
Nairametric
