Google Gemini AI Outshines Criticism and Competition 2024

Google Gemini AI, the internet giant’s generative artificial intelligence system, has faced backlash and challenges from rivals like OpenAI and Microsoft. Shares in Google parent Alphabet (GOOGLE) fell below the key 50-day moving average on Monday, as investors reacted to the mixed news on the AI front. GOOGLE stock is about to break even in 2024 with Monday’s retreat.

Google Gemini AI vs OpenAI and Microsoft Google Gemini AI is a large language model (LLM) that can create text, images, sounds, and video from natural language prompts. It competes with OpenAI’s ChatGPT and Microsoft’s Turing-NLG, among others, in the emerging field of generative AI.

Ethical Concerns in Generative AI Development

Generative AI has many potential applications, such as web search, content creation, advertising, education, and entertainment. However, it also poses ethical and technical challenges, such as bias, misinformation, quality and safety.

Google Gemini AI faced criticism last week when it stopped allowing users to generate images of humans. The move came after Gemini users produced pictures of Black Founding Fathers in American history as well as other inaccurate or offensive imagery.

Google admitted to issues with “inaccuracies in some historical depictions” and said it was working to improve its system. However, it did not say for how long it would be suspending the ability to generate human images.

Meanwhile, OpenAI, whose biggest investor is Microsoft, is developing its own web search product that would more directly compete with Google. OpenAI also introduced new technology last week that uses AI to create high-quality videos from text descriptions.

Expansion and Monetization of Google Gemini AI

Google Gemini AI Powers New Products and Services Despite some setbacks, Google Gemini AI has also been gaining traction in some areas. In February, Google launched new Performance Max advertising tools powered by Gemini. Performance Max ad tools automate buying across YouTube, internet search, display, Gmail, maps, and other applications.

Google also aims to monetize subscription-based Gemini products. Google plans to launch an “AI Premium” version of Google One office productivity tools. A consumer subscription plan that comes with 2 terabytes of storage will cost $19.99 monthly.

Google Gemini AI is part of Google’s broader strategy to leverage its AI capabilities to drive growth and innovation. Google debuted its Gemini AI training model on Dec. 6, 2020. Google announced the availability of Gemini 1.5, an improved AI training model, on Feb. 15, 2021.

Wedbush analyst Daniel Ives, in an email, called the Google sell-off on Monday “way overdone as Google has a massive opportunity on AI with the Street giving no credit. Gemini headwinds but we believe Google is one of the core winners in the AI revolution.”

Pressure on Google Stock Amid Declining Performance

Google Stock Under Pressure, However, Google stock has been under pressure since it reported fourth-quarter earnings in February. Google’s relative strength line has been weakening, indicating that it is lagging behind the broader market. Further, institutional ownership has also declined, suggesting that large investors are losing confidence in the stock.

GOOGL stock holds an Accumulation/Distribution Rating of D, according to IBD data. That institutional ownership rating analyzes price and volume changes in stock over the past 13 weeks of trading.

On the stock market today, Google stock slipped 4.4% to close at 137.57, falling below the 50-day line. The alphabet was on track for its lowest close since early January.

Investors should watch whether Google can reclaim its 50-day line, which is a key technical indicator of a stock’s momentum. A rebound above the 50-day line could signal a renewed uptrend for Google stock.