Alphabet’s GOOGL Google Cloud rolls out consulting services to bolster generative AI efforts.
The new offerings include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques.
Moreover, 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 the latest move is likely to aid Google in gaining strong momentum among customers in this data-driven world where generative AI has created a niche of its own.
This will likely bolster the performance of Google Cloud, which has become one of the major growth drivers of Alphabet. This, in turn, will instill investor optimism in the stock.
In first-quarter 2023, Google Cloud revenues rose 28% year over year to $7.45 billion, accounting for 10.7% of the quarter’s total revenues.
Notably, GOOGL has gained 38.4% in the year-to-date period, outperforming the industry’s growth of 37.7%.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Progress With Generative AI
The latest move marks Google’s progress in the generative AI space. It forayed into the space at the beginning of this year by unveiling its chatbot called Bard.
Notably, Bard marks Google’s cut-throat response to ChatGPT, a chatbot from the Microsoft MSFT-backed startup OpenAI, which has taken the world by storm.
Moreover, Google’s growing generative AI efforts are aiding clientele growth. Recently, its generative AI tools were selected by Mayo Clinic and Booking Holdings BKNG.
Booking Holdings’ Priceline is set to implement Google’s generative AI capabilities across its customer-facing and internal parts of the business.
Priceline is developing its generative AI-powered travel assistant chatbot by leveraging Google Cloud's Generative AI App Builder. This chatbot, which will be rolled out this summer, is intended to help customers in multiple aspects of their travel planning and booking journeys via a conversational mode.
Considering these factors, we believe Google remains well-poised to capitalize on the growth prospects present in the generative AI market.
Per a Grand View Research report, the market is likely to hit $109.4 billion by 2030, witnessing a CAGR of 34.6% between 2022 and 2030.
With the latest consulting services, Alphabet ups its game against Microsoft and Amazon AMZN, which are also making concerted efforts toward bolstering their generative AI offerings.
Google carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Azure offers Azure OpenAI Service, which enables the seamless application of Large Language Models (LLM) and generative AI techniques in various use cases.
This apart, the company recently integrated OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to the users.
Meanwhile, Amazon’s cloud-computing arm, Amazon Web Services (AWS), unveiled an AI-powered solution — Amazon Bedrock to accelerate the deployment of generative AI-backed foundation models (FM). Further, the company introduced its language model called Amazon Titan.
Amazon Bedrock provides seamless access to high-performing FMs from AI startups like AI21 Labs, Anthropic and Stability AI, among others, through an API. With these FMs, developers can build and scale their generative AI-based applications.
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