Google introduced its most capable AI model, Gemini, claiming it can compete with OpenAI's GPT-4.

Google (GOOGL) recently announced the launch of its most powerful large language model (LLM) yet, Gemini,  several months after OpenAI took the tech sector by storm with its GPT-4 model. In the announcement, Google claimed Gemini beat OpenAI’s GPT-3.5 and, in certain benchmarks, GPT-4. This signals the emergence of a new contender in the generative AI arena, challenging the current dominance held by Microsoft (NASDAQ: MSFT) and OpenAI. At the time of writing, Google’s parent company, Alphabet, saw its shares rise 2.6% in Thursday’s premarket trading.

Gemini Beats GPT4 in Some Benchmarks

Google just unveiled its latest AI model, which it claims to be the largest and “the most capable” yet.

Meet Gemini, Google’s newest LLM, whose capabilities have outperformed those of OpenAI’s GPT-3.5, the tech giant claims. According to the announcement, Gemini will offer a suite of three different sizes, including Gemini Ultra, the most capable category; Gemini Pro, developed to perform a broad range of tasks; and Gemini Nano, geared toward specific tasks and mobile devices. 

Gemini’s unveiling comes roughly eight months after Google launched Bard, not long after OpenAI introduced ChatGPT on GPT-3.5. In March 2023, Sam Altman’s AI startup rolled out GPT-4.

Google’s executives said that Gemini Pro outshone GPT-3.5 but evaded questions on how it matched up against GPT-4. Still, the search giant said in its Wednesday white paper that Gemini’s Ultra model outdid GPT-4 in several benchmarks. 

For now, Google said it plans to license Gemini to customers via Google Cloud, allowing them to use the LLM in their applications. As of Dec. 13, developers and enterprise clients can access Gemini Pro using the Gemini API in Google AI Studio or Google Cloud Vertex AI. Meanwhile, Android developers will be able to use Gemini Nano.  

The tech juggernaut’s CEO, Sundar Pichai, said the model will eventually be integrated across other company’s products, including its search engine, ad services, Chrome, and more. 

“This new era of models represents one of the biggest science and engineering efforts we’ve undertaken as a company. I’m genuinely excited for what’s ahead, and for the opportunities Gemini will unlock for people everywhere.”

– Pichai said in Google’s blog post on Wednesday.

Google Climbs 3% in Premarket Trading

Investors welcomed the announcement of Google’s most advanced LLM, pushing the company’s shares 2.6% higher in Thursday’s premarket.

Overall, it has been a favorable year for Google owner Alphabet regarding its stock market performance. The company’s shares surged more than 45% year-to-date, compared to the 19% gain in the broader S&P 500 index.

Notably, Google and other Big Tech behemoths accounted for most of the S&P 500’s gains this year, mainly because of their vital role in the ongoing AI boom. However, it is important to note that Google has underperformed other major AI players like Nvidia, Meta, and Microsoft. Still, it will be interesting to see if Gemini can impact Alphabet’s fundamentals and future stock performance. 

Do you think Gemini can help Google become the most dominant AI player and dethrone Microsoft and OpenAI? Let us know in the comments below. 

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