Alphabet (GOOGL) Boosts Generative AI Footprint With NotebookLM – June 7, 2024
Alphabet (GOOGL – Free Report) is continuously riding on its growing generative AI capabilities. Shares of the company have rallied 26.6% year to date, outperforming the Zacks Internet Services industry’s growth of 21%.
Google is making strong efforts to bolster its footprint in the global generative AI market, which, per a report by Fortune Business Insights, is expected to hit $67.2 billion in 2024 and reach $967.7 by 2032, seeing a CAGR of 39.6% between 2024 and 2032.
In this regard, the company has rolled out its AI-powered note-taking app, NotebookLM, in Australia, Brazil, Canada, India, the U.K., and 208 more countries and territories, which was available only in the United States since its launch.
NotebookLM, which is powered by Google’s Gemini 1.5 Pro language model, aids in document understanding and reasoning. It generates summaries and suggests follow-up questions, focusing on the content of the documents.
For this global launch, Google has upgraded the interface language support of NotebookLM to 108 languages, which include Arabic, Assamese, Bengali, Cantonese, Chinese, Dutch, French, German, Hindi and Hinglish. The app now also supports sources and chats in 38 languages, such as Arabic, Bengali, Chinese, Dutch, French, German, Hindi, Japanese and Spanish.
In addition, Google has added a feature with the help of which NotebookLM can now source content from Google Slides and web URLs. The company has added inline citations to the app.
Google to Gain Competitive Edge
The global rollout of NotebookLM, along with the new features, is expected to provide Google a competitive edge over its peers like Microsoft (MSFT – Free Report) and Apple (AAPL – Free Report) , which are making concerted efforts to bolster their note-taking apps with generative AI.
Microsoft’s integration of its in-house AI system, Copilot, into its note-taking app, Microsoft OneNote, remains noteworthy.
This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app.
Meanwhile, Apple offers the Journal app, which uses AI to gather evidence from daily activities and mindset.
The Journal app allows users to write entries and insert content, with local storage on iPhones and iCloud backups. It not only provides data suggestions but also prompts users to write about their love for doing something and why it brings them joy.
Growing Generative AI Efforts Aid Prospects
Recently, Google upgraded Android Studio’s bot with Gemini Pro, which enables developers to ask coding-related questions.
The company also made Gemini 1.5 Pro available in a public preview on Vertex AI.
The latest additions to the Gemma family of open models, including Gemma 2, the next-generation model with a 27-billion parameter, and PaliGemma, the first vision language model for image captioning, labeling and Q&A use cases, remains noteworthy.
Google also introduced various open-source tools to support generative AI projects and infrastructure. The new tools include the likes of MaxDiffusion — a collection of reference implementations of various diffusion models, JetStream — a new engine to run generative AI models, MaxText — a collection of text-generating AI models targeting tensor processing units (TPUs), and NVIDIA’s (NVDA – Free Report) GPUs in the cloud.
Strengthening generative AI capabilities across various products will help Google deliver enhanced user experience, which, in turn, is expected to aid Alphabet’s overall financial performance in the days ahead.
The Zacks Consensus Estimate for 2024 revenues is pegged at $295.53 billion, which indicates year-over-year growth of 15.2%. The same for 2024 earnings stands at $7.60 per share, which implies year-over-year growth of 31%. The EPS estimate has moved 0.4% north over the past 30 days.
Currently, Alphabet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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