Google Mounts Formidable Challenge to OpenAI as ChatGPT Turns three
MOUNTAIN VIEW, CA – November 21, 2024 – Three years after the launch of ChatGPTโฃ ignited the generative AI revolution, Google is emerging โฃas a powerful competitor, leveraging its substantial resources and a unified strategy to challenge OpenAI’s early dominance. While โOpenAI’s ChatGPT boasts 800โ million weekly users, Google’s Gemini app has reached 650 million users, and analystsโฃ suggest Google is rapidly gaining momentum.
Google’s confidence is rooted โขin itsโฃ core strengths: a massive and continuously โขupdated data corpus, a profitable core business funding โextensive research and โdevelopment, and large-scale โcomputing infrastructure.CEOโฃ Sundar Pichai emphasized the company’s “full, โdeep,โข full-stack approach to AI” onโฃ a recent earnings call.
This approachโฃ was โaccelerated by a 2023 reorganization, placingโ DeepMind’s Demis Hassabis in chargeโฃ of Google’s combined AI divisionโ withโฃ aโค mandate to advance frontier models. Hassabis has reportedly been successful โคin retaining key talent despiteโ significant offers from rival โขcompanies.
Alphabet’s stock โhas surged, with its forward earnings multiple rising to 27x – exceeding its 10-year average of 20x. However, its 14-day Relative Strength Index (RSI) has reached 75, signaling potential for a market correction, according to Bloomberg. Matthew Maley of Miller Tabak told Bloomberg โthat Googleโ “could take the leadershipโข role for the AI industry going forward,” but cautioned the stock “couldโค be due forโ a โฃpullback.”
Despite Google’s progress, OpenAI and Microsoft currently maintain stronger enterprise traction than Google Cloud, wich remains third in market share behind Amazon Web Services (AWS) and Azure. โฃForrester’s Thomas โHusson acknowledged โฃGoogle’s resurgence, stating, “It’s definitely fair to say thatโ Google is back in the game with Geminiโค 3.” He paraphrased Mark Twain, adding that reports of Google’s โคdecline “have been widely exaggerated.”
Threeโ years ago, Google was playing catch-up to OpenAI’s โinitialโ breakthrough. Now, the company is leveraging years of research, infrastructure investment-including over $90 billion in AIโข infrastructure spending-and a dedicated โคchipโค strategy to present a significant challenge to OpenAI’s first-mover advantage. Google’s โsubstantial โขinvestmentโฃ positions it to possiblyโ define the next phase of โคgenerative AI development.
