Alphabet GOOGL is on a roll, harnessing the power of generative AI to propel its growth. The stock has surged 24.4% year to date, outshining the Zacks Internet Services industry’s 19.3% rise.
The Power of Gemini in Google’s Generative AI Strategy
In its quest to infuse generative AI experiences in its offerings, Google leans on Gemini, its formidable large language model. An exciting development in the pipeline is the integration of a Spotify extension with Gemini, promising a richer music streaming experience for users.
Hot on the heels of launching the YouTube Music Gemini Extension, which offers AI-powered music search and radio functionalities, Google’s endeavors are set to fortify its position in the music streaming sphere.
Expansive Potential of Generative AI Efforts Propels Growth
According to a Fortune Business Insights report, the global generative AI market is poised to soar to $67.2 billion by 2024 and a staggering $967.7 billion by 2032, with a compelling CAGR of 39.6%.
Alphabet’s relentless focus on advancing its generative AI capabilities positions it favorably to capitalize on this lucrative market. Recent moves include arming Android Studio’s bot with Gemini Pro, empowering developers to seek coding advice seamlessly. Furthermore, the introduction of Gemini 1.5 Pro on Vertex AI and LearnLM, a suite of AI models for interactive tutoring, highlights Alphabet’s commitment to innovation.
Competition Heats Up in the Generative AI Arena
Alphabet’s rivals, including Microsoft (MSFT) and Amazon (AMZN), are also doubling down on generative AI endeavors, intensifying the competitive landscape.
Microsoft, for instance, integrates GPT-4 into Bing and Edge for a ChatGPT-like user experience, while its Azure OpenAI Service catalyzes the adoption of generative AI techniques. Not to be outdone, Amazon leverages Amazon Bedrock to access high-performance foundation models via an API, along with partnering with NVIDIA for enhanced AI capabilities.
Through strategic partnerships and cutting-edge technology, Alphabet remains at the vanguard of generative AI innovation, poised to enhance user experiences and bolster its financial performance moving forward. With optimistic revenue and earnings estimates for 2024, Alphabet’s growth trajectory in the generative AI space shines bright.