April 14, 2024

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Google Stock Falls Amid Fresh OpenAI Report

Google Stock Falls Amid Fresh OpenAI Report

Shares in Google parent Alphabet (GOOGL) fell on Thursday as investors digested the latest artificial intelligence news. In a possible problem for Google stock, rival OpenAI could be planning to launch its own web search tool. Meanwhile, Google announced the availability of Gemini 1.5, an improved AI training model.




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According to a Google blog, Gemini 1.5 has “dramatically” enhanced performance.  Google said it will release Gemini 1.5 Pro, one version of the training model, for early testing.

“This is an exciting time for AI. New advances in the field have the potential to make AI more helpful for billions of people over the coming years. Since introducing Gemini 1.0 (in December 2023), we’ve been testing, refining and enhancing its capabilities,” said Demis Hassabis, CEO of Google’s DeepMind, its AI research lab, in the blog.

Meanwhile, The Information reported that AI startup OpenAI is working on a web search product that would more directly compete with Google. OpenAI’s technology has been integrated into Microsoft‘s (MSFT) Bing search engine. Microsoft is the biggest investor in OpenAI.

Microsoft Share Gains In Search Small

Also, Microsoft gained little U.S. market share in internet searches in 2023 despite the new OpenAI alliance. Microsoft’s Bing still holds less than 8% of the U.S. market, with Google at nearly 88%.

On the stock market today, GOOGL stock fell 2.2% to close at 142.77. With the loss, Google stock neared its 50-day moving average.

Investors should look for a bounce off the 50-day line. If that happens, GOOGL stock may be actionable again.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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