Alphabet’s (GOOGL) Google Boosts Gen AI Efforts With Duet AI
Alphabet’s GOOGL Google recently announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which was announced in May 2023.
Duet AI for developers provides developers with real-time code suggestions, chat assistance and enterprise-focused customization.
It focuses on code/boilerplate generation, inline code completion, code explanation and code security guardrails.
Google, in order to boost the capability of Duet AI for developers, has also partnered with 25 companies, including Confluent, HashiCorp and MongoDB, for datasets.
This is likely to aid developers in writing code for their platforms.
We believe that the latest move will likely help Google to compete against its peer Microsoft MSFT, which offers a similar software called Copilot through its subsidiary, GitHub, its in-house AI system that operates across most Office apps.
We note that the latest move has added strength to Google Cloud offerings as well as generative AI capabilities.
Google Cloud, which has become an integral part of Alphabet, reported revenues of $8.41 billion in the third quarter of 2023. The figure accounted for 10.9% of the quarter’s total revenues and exhibited year-over-year growth of 22.5%.
Our model projects Google Cloud’s 2023 revenues at $32.5 billion, indicating year-over-year growth of 23.9%.
We believe that strengthening the Google Cloud is likely to aid Alphabet’s overall financial performance. This, in turn, is expected to instill investor optimism in the stock.
Our model projects Alphabet’s total 2023 revenues at $303.04 billion, indicating year-over-year growth of 7.1%.
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Growing Generative AI Efforts
Apart from the latest move, the company recently introduced its new, advanced and powerful large language model, namely Gemini.
Gemini is available in three different sizes, Gemini Ultra, which is its largest and most capable one; Gemini Pro, designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.
Google launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.
In addition, the company offers consulting services, which include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques. These tools are designed to help customers boost automation in their business operations by generating content and summarizing information with the power of AI.
We believe Alphabet remains well-poised to capitalize on growth opportunities present in the booming generative AI market on the back of the abovementioned endeavors. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
A Fortune Business Insights report shows that the global generative AI market size is expected to reach $667.96 billion by 2030, seeing a CAGR of 47.5% between 2023 and 2030.
Competitive Scenario
Given the upbeat scenario in the generative AI space, not only Google but also Microsoft, Amazon AMZN and Adobe ADBE are flexing muscles to bolster generative AI capabilities.
Microsoft continues to make strong efforts to boost its generative AI capabilities. Its integration of GPT-4 into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.
It recently announced OpenAI’s DALL-E 3 AI image-synthesis model, fully integrated with ChatGPT, which challenges previous models by rendering images with complex descriptions and handling in-image text generation.
Amazon’s AWS recently announced the general availability of its fully managed service called Amazon Bedrock. It provides seamless access to high-performing foundation models (“FM”) from AI companies through an API. The company also made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
The e-commerce giant’s investment plans in Anthropic remain noteworthy. Amazon will invest $4 billion to acquire a minority stake in Anthropic. This investment will allow AWS to provide access to Anthropic’s future FMs to its customers. These FMs will be available through Amazon Bedrock.
Meanwhile, Adobe recently announced the commercial release of its family of creative, generative AI models — Firefly.
Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities.
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Original: MSFT Feed: Alphabet’s (GOOGL) Google Boosts Gen AI Efforts With Duet AI