Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Google is constantly making strong efforts toward strengthening its cloud segment on the back of its new innovative products. This is evident from its latest unveiling of Gemini Pro for enterprises.

Gemini, a new, advanced and powerful large language model (“LLM”), was recently announced. It is available in three different sizes, Gemini Ultra, which is its largest and most capable one; Gemini Pro, which is designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.

Gemini Pro supports 38 languages across 180 countries. Thus, it is capable of helping customers develop apps such as AI-powered chatbots, easy-to-query inventory databases and marketing presentations seamlessly.

It is designed to combine various information, including text, code, audio, image and video, in the same way that humans see, hear, read, listen and talk about different types of information simultaneously.

It is also cost-efficient. It costs four times less for input and two times less for output than the AI model, PaLM 2.

Google Cloud in Focus

The latest move has added strength to Google Cloud offerings.

In addition, the company recently made its much-awaited A3 virtual machines (“VMs”) generally available. A3, which was launched last year, is powered by NVIDIA’s (NVDA Quick QuoteNVDA - Free Report) H100 Tensor Core GPUs that feature a transformer engine capable of addressing trillion-parameter models.

A3 VMs are comprised of dual next-generation 4th Gen Intel Xeon scalable processors, eight NVIDIA H100 GPUs per VM and 2TB host memory. It delivers 3.6 TB per second of bisectional bandwidth, which, in turn, enhances the supercomputing powers of the users.

Google strengthened its Kubernetes offerings by launching a new enterprise version of its Google Kubernetes Engine (“GKE”), which aids enterprises in complex workload management while running multiple clusters by combining GKE with Anthos, Google’s container platform.

All these endeavors are likely to aid the performance of Google Cloud in the coming days.

Google Cloud reported revenues of $8.41 billion in the third quarter of 2023. The figure accounted for 10.9% of the quarter’s total revenues and exhibited year-over-year growth of 22.5%.

Our model projects Google Cloud’s 2023 revenues at $32.5 billion, indicating year-over-year growth of 23.9%.

We believe that strengthening Google Cloud is likely to aid Alphabet’s overall financial performance. This, in turn, is expected to instill investor optimism in the stock.

GOOGL has gained 50.3% on a year-to-date basis.

Growing Generative AI Efforts

Apart from the latest move, the company recently announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which was announced in May 2023.

Google launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.

We believe Alphabet remains well-poised to capitalize on the growth opportunities present in the booming generative AI market on the back of the abovementioned endeavors. Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A Fortune Business Insights report shows that the global generative AI market size is expected to reach $667.96 billion by 2030, seeing a CAGR of 47.5% between 2023 and 2030.

Given the upbeat scenario in the generative AI space, not only Google but also Microsoft (MSFT Quick QuoteMSFT - Free Report) and Amazon (AMZN Quick QuoteAMZN - Free Report) are flexing muscles to bolster generative AI capabilities.

Microsoft continues to make strong efforts to boost its generative AI capabilities. Its integration of GPT-4 into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.

Microsoft Azure offers the Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases.

It recently announced OpenAI's DALL-E 3 AI image-synthesis model, fully integrated with ChatGPT, which challenges previous models by rendering images with complex descriptions and handling in-image text generation.

Amazon’s AWS recently announced the general availability of its fully managed service called Amazon Bedrock. It provides seamless access to high-performing foundation models from AI companies through an API. The company also made the Amazon Titan Embeddings model generally available.