Google-parent Alphabet Surges 6.4% as Most Capable AI Model Gemini Takes Center Stage

Shares of Google-parent Alphabet soared on Thursday, rising as high as 6.4% in response to the company’s announcement of its latest model, Gemini. Described by Google as their most capable and general model yet, Gemini has received positive initial feedback, with users reporting that it can outpace some functions of OpenAI’s advanced model, GPT-4. Analysts have noted that the launch of Gemini is a step in the right direction for Google, although questions remain about its monetization plan. Despite this uncertainty, Bank of America views the AI launch as a bullish sign and believes that it could have a positive impact on Google’s shares in the first half of 2024. Gemini Ultra, the most powerful iteration of the model, is expected to be released next year. Tarek Khalil, a Google Cloud director, expressed optimism about the future of AI, emphasizing the significant investments being made by technology providers, end users, and partners. The launch of Gemini underscores the intensifying AI arms race and signals a promising future for the field.