Google Rebrands its AI Chatbot from Bard to Gemini, Introduces Tiered Subscription Service
Last week, Google parent company, Alphabet (NASDAQ:GOOGL), announced a significant update to its Large Language Model (LLM), including a rebranding of its AI chatbot from Bard to Gemini. This move aligns Google with competitor OpenAI, which offers a similar chatbot called ChatGPT. With Gemini, Google now offers a range of subscription plans for its AI chatbot, catering to different user needs.
Improved Capabilities and Subscription Tiers
Gemini introduces different levels of service, allowing users to choose the most suitable option. The service tiers range from a basic, free plan to a top-tier Ultra 1.0 package priced at $19.99 per month. Utilizing the Gemini Advanced AI model, the Ultra version offers exceptional performance in complex tasks such as programming, creative teamwork, and logical analysis. Google claims that Gemini’s unique tiers and models set it apart from its competitors.
Expanded Access and Platforms
Gemini is available through a standalone Android app, aptly named Gemini, and will soon be accessible through the standard Google app on iOS. Additionally, users can access the chatbot through web browsers, as long as they have enabled Google Labs functionality. This availability in multiple platforms ensures a seamless user experience and wider access for Gemini users.
Gemini’s Superior Performance
According to Google’s benchmarks, Gemini has surpassed GPT-4V (GPT-4 with vision) in various areas. Gemini outperforms GPT-4V, including college-level reasoning problems, optical character recognition, document comprehension, and speech recognition. This exceptional performance strengthens Google’s position in the AI space and showcases the capabilities of its Large Language Model.
Positive Outlook for Investors
Industry experts, like TD Cowen’s 5-star analyst John Blackledge, view Google’s update as positive news for investors. Blackledge states, “the new offering of a Gemini-based paid subscription product, Google One AI Premium, supports the notion that GOOG is confident enough in the quality of output to charge consumers a monthly fee.” This offering aligns Google with its competitors, OpenAI and Microsoft, who already provide subscription-based services including access to their LLM products.
Responsible Development and Deployment
Google has emphasized its commitment to responsible AI development with its Gemini chatbot. The company integrates classifiers to screen out malicious content, ensuring a safe user experience. Furthermore, Google collaborates with third parties to rigorously test the Gemini model, emphasizing their cautious approach to deploying AI products. This commitment to responsible AI development aligns with Google’s philosophy and builds trust with users and investors.
Impressive Outlook for GOOGL Shares
John Blackledge’s positive outlook for Google’s stock aligns with the general sentiment of Wall Street. Blackledge reiterates an “Outperform” rating for GOOGL shares, with a price target of $165, representing a 12% potential upside. The average target price among analysts stands at $164.56, which implies a ~13% upside. With 29 “Buy” ratings and 8 “Hold” ratings, the stock claims a “Strong Buy” consensus rating.
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended for informational purposes only. It is crucial to conduct your own analysis before making any investment decisions.
