Alphabet, the parent company of Google, saw a surge in its stock price on Thursday following the announcement of its new AI tool, Gemini. The stock jumped as much as 6.4% during Thursday trades, with investors applauding what Google describes as its "most capable and general model yet." This rally puts Alphabet on track for its best day since late August, and also contributed to a more than 1% increase in the Nasdaq.
Gemini was unveiled earlier than expected, as previous reports had indicated a 2024 launch. However, the most powerful version, Gemini Ultra, will not be released until next year. Analysts at Wells Fargo cautioned that it remains to be seen how Google plans to monetize Gemini, but overall, the launch is seen as a step in the right direction. Bank of America also views this AI launch as a positive sign, stating that Google's strong AI capabilities can be beneficial for the company's shares in the first half of 2024.
The initial reactions to Gemini have been largely positive, with users reporting that it can keep up with and even surpass certain functions of OpenAI's advanced model, GPT-4. Many users on social media expressed their excitement, with some even stating "Google is so back" in response to impressive demo videos of Gemini.
Tarek Khalil, a Google Cloud director overseeing the Middle East and North Africa, believes that the AI arms race is just beginning. He stated that the future looks bright for AI, with investments being made not only on the technology side but also in resources and partnerships. Khalil emphasized that there is a lot of engagement and investment from both tech providers and end-users, indicating that models like Gemini are likely to skyrocket in the near future.
Overall, the introduction of Gemini has generated enthusiasm on Wall Street, with investors optimistic about Google's AI capabilities and the potential benefits for the company and its stock.