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Key Facts
OpenAI CEO Sam Altman declared a “code red” on October 23, 2023, after Google’s Gemini model outperformed competing AI technologies. Gemini 3, launched last month, surpassed rivals in over a dozen benchmark tests, prompting OpenAI to focus primarily on improvements to ChatGPT, pausing other initiatives.
Gemini’s user base reached 650 million weekly in October, up from 450 million in July, while OpenAI has 800 million users. Gemini has been integrated into Google Search, contributing to a 10% increase in search queries, easing concerns over Alphabet’s dominance in the AI space.
Investors view Alphabet more favorably now, with the company’s stock trading at 31 times earnings, similar to the S&P 500. The successful rollout of Gemini marks a significant turnaround for Alphabet amidst skepticism regarding its AI ambitions.
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