Microsoft (MSFT) was declared the winner in the battle for artificial intelligence (AI) supremacy, thanks to the company’s recent AI integrations which is being regarded as the best among the cloud giants – a group that includes Amazon (AMZN) and Google-parent Alphabet (GOOG , GOOGL). But Google’s recently launched Gemini, its latest large language model, suggests the battle is far from over.
In fact, both Google and Microsoft now have the AI muscle to create the sort of duopoly that will stave off other competitors like Coke (KO), Home Depot (HD), Lowe’s (LOW), Visa (V), MasterCard (MA) and Uber (UBER). Both Google and Microsoft are positioned to dominate this fast-expanding AI industry to control prices and ultimately corner market.
First teased by Alphabet CEO Sundar Pichai at the I/O developer conference in June, Gemini was officially unveiled earlier this month. In describing the capabilities of Gemini, Pichai says “One of the powerful things about this moment, is you can work on one underlying technology and make it better and it immediately flows across our products.”
Gemini will include a suite of three different sizes. There is Gemini Ultra, the company’s largest, most capable category. There is also Gemini Pro, which scales across a wide range of tasks. And then there is Gemini Nano, which it will use for specific tasks and mobile devices.
“Gemini is the result of large-scale collaborative efforts by teams across Google, including our colleagues at Google Research,” wrote Pichai in a blog post following the launch. “It was built from the ground up to be multimodal, which means it can generalize and seamlessly understand, operate across and combine different types of information including text, code, audio, image and video.”
As it stands, Google plans to license Gemini to its customers through the Google Cloud platform so customers can leverage them in their own applications. What’s more, the company says Gemini will be leverage to power Google products like its Bard chatbot and Search Generative Experience, which tries to answer search queries with conversational-style text (SGE is not widely available yet). Gemini will also power Google’s ad products, the Chrome browser, and other Google assets, all over the world. In essence Gemini is the future of Google.
Without question, the market has developed a seemingly insatiable appetite for AI technology and the companies that can lead this new frontier. The money-making potential is immense. The generative AI market is currently growing at 42% and could hit $1.3 trillion by 2032, according to Bloomberg Intelligence estimates. The bulk of the revenue growth from generative AI, estimated $247 billion by 2032, will come from demand for the infrastructure needed to train AI models.
What’s more, estimates suggests that the AI-assisted digital ads business could reach $192 billion in annual revenue by 2032, while revenue from AI servers could hit $134 billion. Microsoft’s $10 billion investment in Open AI, giving it 33% ownership of the company, was referred to by analysts as Microsoft’s “iPhone moment.” Since then, Microsoft has boosted its ChatGPT ownership to 49%. Microsoft has since launched Copilot, which leverages AI to enhance its productivity software suite.
Copilot is already used by 40% of Fortune 100 companies, and over 37,000 organizations have subscribed to Copilot for Business. Google has now launched Gemini which is priced at the same $30 monthly subscription price for each user, supporting the company’s gain in market share in the enterprise segment. With both companies introducing AI technology in their product portfolio to enhance the user experience, it would be wise to bet on both of them.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.