Google's AI Ambitions: Sundar Pichai Aims for Gemini to Rival ChatGPT Amid Legal Challenges and Strategic Partnerships

As of last week, Alphabet's Google C (GOOG) recorded a gain of 1.62%. Over the past week, the stock has appreciated by 2.27%, with a year-to-date rise of 3.73%. Currently, its market capitalization stands at $2,418.21 billion. On January 17, 2025, the company witnessed a substantial transaction value of $4.366 billion, placing it 12th in terms of trading volume on the U.S. markets that day. This marked a 66.21% increase from the previous day, with 22.109 million shares traded.

Alphabet Inc., founded in 2015, serves as the holding company for Google and its other subsidiaries. Initially formed in California in 1998, Google reincorporated in Delaware in 2003. Alphabet's operations span various sectors, including technology, life sciences, capital investment, and research. Its subsidiaries comprise Google, Calico, GV, Google Capital, and Google Fiber, among others. Google is primarily engaged in Internet search, cloud computing, and advertising technology, developing and offering a wide range of Internet-based products and services.

Despite releasing an official iOS app for its generative AI chatbot Gemini, Google faces challenges as its user base for paid AI chatbot services lags behind competitors like ChatGPT and Claude. This underscores Google's pioneering role in AI basic research, with initiatives such as the TPU hardware system and AI infrastructure scaling in data centers. Yet, due to its later launch compared to companies like OpenAI and Anthropic, Google remains a challenger in the generative AI app sector, where ChatGPT and Claude hold dominant positions. According to statistics from Earnest Analytics, around 60% of Gemini Advanced users continue paying after six months, compared to over 70% for ChatGPT Plus and slightly more than 60% for Claude Pro, the latter supported by Amazon and Google.

On January 17, in midday trading, Google C (GOOG) saw a decline of 1.21%, trading at $194.605 per share with a total transaction value of $1.768 billion. Recent financial statements reveal that as of September 30, 2024, Google C generated $253.549 billion in revenue, reflecting a year-on-year growth of 14.68%. The company's net income attributable to shareholders increased by 38.55% to $73.582 billion. Notably, Google C is expected to release its fiscal 2024 annual report on February 4, making this a key date for stakeholders.

Reports indicate that Google CEO Sundar Pichai has expressed confidence in the Gemini AI, noting its perceived superiority over rivals. He aims for the chatbot to reach 500 million users by the end of the year, although current user numbers remain undisclosed. This aspiration comes amid news that the Dutch court has allowed a privacy lawsuit involving Android phones against Google to proceed. In the realm of academic research, a Swedish study highlighted concerns over AI-generated content infiltrating Google Scholar, emphasizing potential threats to scientific integrity.

Separately, Google's initiative with Mercedes-Benz to develop AI-powered conversational search capabilities within navigation systems reflects its broader strategic partnerships. These developments indicate Google's ongoing efforts to integrate AI technologies into diverse application areas, reinforcing its competitive stance in the tech industry.