Google CEO, Sundar Pichai, reassured investors about DeepSeek's threat as the company announced a significant investment of $75 billion in AI this year. Pichai confidently stated that Google's AI models are on par with DeepSeek's capabilities.
Comparing Efficiency
During Google's Q4 earnings call, Pichai highlighted the efficiency of Google's AI models, emphasizing the company's commitment to enhancing inference. He downplayed the impact of DeepSeek on Alphabet's business, citing cost efficiency as a key factor.
Capital Expenditure and Market Response
Google's announcement of $75 billion in capital expenditure exceeded analyst expectations, causing a temporary decline in share prices. Despite this, Pichai remained optimistic about Google's position in the AI landscape.
Google's Competitive Edge
Pichai praised DeepSeek's team but emphasized Google's strength in developing efficient AI models. He highlighted Google's Gemini models as leading the way in terms of cost, performance, and latency, surpassing DeepSeek's V3 and R1 models.
Driving Innovation
With the increasing focus on AI by tech giants like Google, the competition has intensified. Pichai acknowledged the importance of reasoning models in driving spending towards inference. He expressed excitement about the potential of AI to enable new use cases at a reduced cost, creating vast opportunities for innovation.
In conclusion, Google's proactive approach to investing in AI showcases its commitment to staying ahead in the competitive AI landscape. Pichai's confidence in Google's AI capabilities and continued innovation sets a strong foundation for the company's future growth.
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By: hlangley@insider.com (Hugh Langley)
Title: Google CEO Responds to DeepSeek Threat with $75 Billion Investment in AI
Sourced From: www.businessinsider.com/google-downplays-deepseek-threat-75-billion-ai-spend-2025-2
Published Date: Wed, 05 Feb 2025 00:02:38 +0000
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