Google experiences 5% surge in shares following unveiling of advanced AI Model, Gemini

On Thursday, Google witnessed a notable 5% surge in its shares, marking the most favorable day for the tech giant since August 29. The surge came in the wake of Google’s announcement of its latest artificial intelligence model, Project Gemini, positioning the company to compete with AI models from industry players like OpenAI, Microsoft, and Meta.

Project Gemini, unveiled this week’s Wednesday, represents Google’s most advanced large language model to date. Designed to emulate human-like behaviour, Gemini is anticipated to fuel discussions surrounding the potential benefits and risks associated with advanced artificial intelligence.

Despite Google opting not to disclose Gemini’s parameter count, a key measure of model complexity, a white paper released on December 6 showcased the superior performance of Gemini’s most capable version over GPT-4.

The paper highlighted achievements in assessments such as multiple-choice exams and grade-school math, acknowledging ongoing challenges in achieving higher-level reasoning skills in AI models.

Wells Fargo’s trading desk noted the positive market response, stating that the announcement “should be enough to quiet down the ‘where is GOOG on AI’ chatter.” However, concerns were raised about Google’s monetisation strategy for Gemini, emphasising the need for clarity in this aspect.

JPMorgan analysts, while noting Wall Street’s somewhat subdued reaction, expressed encouragement regarding Google’s strides in this significant technological shift. However, they anticipate potential pushback due to uncertainties surrounding the monetization path in Google Search.

Gemini’s introduction is expected to intensify the ongoing AI competition, with a particular focus on OpenAI and Microsoft, further raising the stakes in the rapidly evolving artificial intelligence landscape.