Google CEO Sundar Pichai speaks in conversation with Emily Chang during the APEC CEO Summit at Moscone West on November 16, 2023 in San Francisco, California. The APEC summit is being held in San Francisco and runs through November 17.
Google is launching what it considers its largest and most capable artificial intelligence model Wednesday as pressure mounts on the company to answer how it’ll monetize AI.
The large language model Gemini will include a suite of three different sizes: Gemini Ultra, its largest, most capable category; Gemini Pro, which scales across a wide range of tasks; and Gemini Nano, which it will use for specific tasks and mobile devices.
For now, the company is planning to license Gemini to customers through Google Cloud for them to use in their own applications. Starting Dec. 13, developers and enterprise customers can access Gemini Pro via the Gemini API in Google AI Studio or Google Cloud Vertex AI. Android developers will also be able to build with Gemini Nano. Gemini will also be used to power Google products like its Bard chatbot and Search Generative Experience, which tries to answer search queries with conversational-style text (SGE is not widely available yet).
Gemini Ultra is the first model to outperform human experts on MMLU (massive multitask language understanding), which uses a combination of 57 subjects such as math, physics, history, law, medicine and ethics for testing both world knowledge and problem-solving abilities, the company said in a blog post Wednesday. It can supposedly understand nuance and reasoning in complex subjects.
Sundar Pichai, chief executive officer of Alphabet Inc., during the Google I/O Developers Conference in Mountain View, California, US, on Wednesday, May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
“Gemini is the result of large-scale collaborative efforts by teams across Google, including our colleagues at Google Research,” wrote CEO Sundar Pichai in a blog post Wednesday. “It was built from the ground up to be multimodal, which means it can generalize and seamlessly understand, operate across and combine different types of information including text, code, audio, image and video.”
Starting today, Google’s chatbot Bard will use Gemini Pro to help with advanced reasoning, planning, understanding and other capabilities. Early next year, it will launch “Bard Advanced,” which will use Gemini Ultra, executives said on a call with reporters Tuesday. It represents the biggest update to Bard, its ChatGPT-like chatbot.
The update comes eight months after the search giant first launched Bard and one year after OpenAI launched ChatGPT on GPT-3.5. In March of this year, the Sam Altman-led startup launched GPT-4. Executives said Tuesday that Gemini Pro outperformed GPT-3.5 but dodged questions about how it stacked up against GPT-4.
When asked if Google has plans to charge for access to “Bard Advanced,” Google’s general manager for Bard, Sissie Hsiao, said it is focused on creating a good experience and doesn’t have any monetization details yet.
When asked on a press briefing if Gemini has any novel capabilities compared with current generation LLMs, Eli Collins, vice president of product at Google DeepMind, answered, “I suspect it does” but that it’s still working to understand Gemini Ultra’s novel capabilities.
Google reportedly postponed the launch of Gemini because it wasn’t ready, bringing back memories of the company’s rocky rollout of its AI tools at the beginning of the year.
Multiple reporters asked about the delay, to which Collins answered that testing the more advanced models take longer. Collins said Gemini is the most highly tested AI model that the company’s built and that it has “the most comprehensive safety evaluations” of any Google model.
Collins said that despite being its largest model, Gemini Ultra is significantly cheaper to serve. “It’s not just more capable, it’s more efficient,” he said. “We still require significant compute to train Gemini but we’re getting much more efficient in terms of our ability to train these models.”
Collins said the company will release a technical white paper with more details of the model on Wednesday but said it won’t be releasing the perimeter count. Earlier this year, CNBC found Google’s PaLM 2 large language model, its latest AI model at the time, used nearly five times the amount of text data for training as its predecessor LLM.
Also on Wednesday, Google introduced its next-generation tensor processing unit for training AI models. The TPU v5p chip, which Salesforce and startup Lightricks have begun using, offers better performance for the price than the TPU v4 announced in 2021, Google said. But the company didn’t provide information on performance compared with market leader Nvidia.
The chip announcement comes weeks after cloud rivals Amazon and Microsoft showed off custom silicon targeting AI.
During Google’s third-quarter earnings conference call in October, investors asked executives more questions about how it’s going to turn AI into actual profit.
In August, Google launched an “early experiment” called Search Generative Experience, or SGE, which lets users see what a generative AI experience would look like when using the search engine — search is still a major profit center for the company. The result is more conversational, reflecting the age of chatbots. However, it is still considered an experiment and has yet to launch to the general public.
Investors have been asking for a timeline for SGE since May, when the company first announced the experiment at its annual developer conference Google I/O. The Gemini announcement Wednesday hardly mentioned SGE and executives were vague about its plans to launch to the general public, saying that Gemini would be incorporated into it “in the next year.”
“This new era of models represents one of the biggest science and engineering efforts we’ve undertaken as a company,” Pichai said in Wednesday’s blog post. “I’m genuinely excited for what’s ahead, and for the opportunities Gemini will unlock for people everywhere.”
Nvidia CEO Jensen Huang gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas on Jan. 6, 2025.
Steve Marcus | Reuters
Nvidia has lost nearly a third of its value just two months after notching a fresh high.
The leading chipmaker slumped about 5% on Monday, building on last week’s losses as heavy selling continued across the tech sector. The popular artificial intelligence stock has shed about a fifth of its market cap since President Donald Trump’s inauguration.
The stock hit an intraday high of $153.13 on Jan. 7.
Tariff fears and growth concerns have rocked technology stocks, including Nvidia, over the past week, with the tech-heavy Nasdaq Composite dropping more than 4%. The Nasdaq traded at a six-month low on Monday.
Many technology companies rely on parts and manufacturing overseas and new levies could push up prices. That has also sparked worries of a U.S. recession, which Trump did not rule out over the weekend.
Tesla led the declines among the “Magnificent Seven” names, plummeting more than 13%. The Elon Musk-backed electric vehicle company has plunged 16% over the past week and shed nearly 44% since Trump took office in January. The stock is also coming off its longest weekly losing streak in history as a public company.
Elon Musk’s social media platform X experienced several outages on Monday morning, leaving some users unable to load the site.
Nearly 40,000 users reported problems with the platform around 10 a.m. ET, according to the analytics platform Downdetector, which gathers data from users who spot glitches and report them to the service. Around 28,000 people were experiencing issues as of 11:30 a.m. ET.
When X resumed loading for users Monday afternoon, Musk said the company had suffered a “massive cyberattack.” Musk did not provide any evidence, and CNBC could not independently verify that a cyberattack took place.
“We get attacked every day, but this was done with a lot of resources,” Musk wrote in a post. “Either a large, coordinated group and/or a country is involved.”
X did not immediately respond to CNBC’s request for comment.
Musk acquired X, formerly known as Twitter, for $44 billion in 2022. The Tesla CEO slashed the company’s headcount by about 80% from 7,500 employees to 1,300 workers, and just 550 full-time engineers, by January 2023.
X has experienced several large-scale outages since Musk’s takeover. Users reported problems with the platform in December 2022 and with the site’s desktop app in July 2023, for instance.
The timing of the X outage couldn’t have been worse for NFL fans, who rely on the service for news updates. The first day of the NFL’s free agency tampering window began at 12 p.m. ET with the service down, sending fans searching for other options such as linear TV and Bluesky to get their news on player signings.
— CNBC’s Alex Sherman contributed reporting.
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Bitcoin dropped under the $80,000 level Monday, dragged by the continued selling pressure in the equities market.
The price of the flagship cryptocurrency was last lower by 5% at $78,714.96, its lowest level since November, according to Coin Metrics.
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Bitcoin in the past day
Shares of companies linked to the crypto space also slid. Coinbase fell roughly 14%. Robinhood lost 17%, and bitcoin proxy play Strategy, formerly known as MicroStrategy, declined 16%.
Bitcoin ETFs are coming off their fourth week in a row of outflows. They logged $867 million of outflows last week, bringing the four-week total to $4.75 billion, according to CoinShares. Continued bearishness pushed crypto prices even lower over the weekend, with bitcoin dropping sharply on Sunday evening to the $80,000 level for the first time since Feb. 28.
Absent a crypto-specific catalyst, macro concerns are likely to continue weighing on cryptocurrency prices in the near term. This week, the market will be watching for key economic indicators, including the Job Openings and Labor Turnover Survey (JOLTS) Tuesday, the consumer price index on Wednesday and the producer price index slated for Thursday.
Although investors expect cryptocurrency prices are likely to pull back even more before making a run for a new record, their positive outlook on the year driven by regulatory tailwinds is still intact.
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