The latest plan for Google (NASDAQ:GOOG) in AI was not well-received by investors. Alphabet will be incorporating the Gemini AI system into several Google AI features, from Bard to cloud products and even enterprise tools. Despite this ambitious plan, investors pulled back on their Alphabet investment and sent Alphabet down fractionally in Tuesday afternoon’s trading.
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Gemini will be part of a range of Google services under the new plan, and with it will likely bring in some new features. Gemini is capable of producing both text and images, which will likely help consolidate some of Google’s efforts on that front. The move is intended to help Alphabet better compete with the likes of Bing at Microsoft (NASDAQ:MSFT). Google noted that, back in May, Gemini was still “in training,” though this being three months later, who knows how far it’s gotten since then?
Yet, for those who think all this AI business is moving just a little fast, you may be right to be concerned. Reports from Singularity Hub suggest that Gemini could be a “next level AI.” While the implications of this are somewhat unclear, Singularity Hub notes that Gemini may ultimately “…set a high-water mark in AI without a leap in size.” It’s said to be on par with or perhaps superior to GPT-4, which comes with a full trillion parameters. What will happen when that goes live is anybody’s guess.
While this may be a controversial development, Alphabet has little controversy with analysts. With seven Buy ratings and two Hold, Alphabet stock is considered a Strong Buy. Further, thanks to its average price target of $142.33, Alphabet stock comes with an upside potential of 8.92%.
