Gemini Surpasses ChatGPT, Drives Alphabet to $3 Trillion Market Cap

Google's Gemini application has surpassed ChatGPT to top the free app rankings on the Apple App Store this week. This achievement marks a significant milestone for Google, which has been striving to catch up with OpenAI in the generative AI sector. The recent updates to Google's Gemini AI model, particularly the introduction of the upgraded "Flash" AI model—2.5 Flash Image—have played a crucial role in attracting a large number of new users. The new model includes the Nano Banana image editing feature, which allows users to merge multiple photos and generate content based on prompts, such as creating digital avatars from uploaded photos.

According to a post by the Gemini application manager on social media last week, this feature has brought in 13 million new users to the Gemini application. Users have uploaded 500 million images to the application. The manager also mentioned that due to the high demand, the team had to temporarily set usage limits over the weekend. As of July, the last time the company disclosed data, the CEO stated that the monthly active users of the Gemini application had exceeded 450 million.

Google's improved performance in the consumer AI sector has also garnered the attention of investors. On Monday, Google's parent company, Alphabet, became the fourth member of the $3 trillion market capitalization club, joining NVIDIA, Microsoft, and Apple. Alphabet's stock has risen 33% this year, compared to a 16% increase in the Nasdaq index over the same period. Earlier this month, Google also benefited from a favorable antitrust ruling that allowed it to retain its Chrome browser.

This development underscores Google's growing influence in the AI landscape. The company's strategic updates and innovative features have not only helped it surpass competitors like ChatGPT but also solidified its position as a leader in the AI industry. As Google continues to invest in and refine its AI technologies, it is poised to maintain its competitive edge and attract even more users in the future.