Alphabet, the parent company of Google, has responded to Microsoft’s lead in the AI chatbot race with ChatGPT by launching its own chatbot called Bard. However, Bard’s launch did not go as planned, and it was criticized for inaccuracies in its responses.
Sundar Pichai, the CEO of Alphabet, has been working on integrating AI technologies into the company’s growth strategy. Google’s chatbot, Bard, is one of the AI tools that Pichai is leveraging to achieve this goal. In an interview with Bloomberg, Pichai stated that Bard is a part of Google’s mainstream search experience and that it will be further developed to improve its capabilities.
Alphabet has been investing heavily in AI technologies to improve its core offerings, such as search and cloud computing. The company’s CEO, Sundar Pichai, has outlined three AI focus points that the company is working towards: language learning models (Bard), AI tools for creators and developers, and commercializing its AI technology for other enterprises. Alphabet’s Gemini AI offering is also expected to help the company in many ways, including making its core search and ads businesses more lucrative, and revolutionizing industries such as healthcare and transportation.
Alphabet’s historical performance in terms of revenues, net income and free cash flow places it amongst the best compounders in the world.
Alphabet has been investing heavily in clean energy and mobility. In 2020, Google pledged to run its entire business on carbon-free energy by 2030. Alphabet’s subsidiary, Waymo, is a leader in the self-driving industry, which is expected to generate $800 billion in revenue by 2035.
However, Alphabet could make a seismic contribution towards global net zero goals and climate impact. The cloud offers organizations and individuals virtually limitless computing, storage, networking capabilities, and advanced software applications, with generative AI (gen AI) solutions becoming increasingly prevalent. Running these tools on the cloud enables companies to acquire new decarbonization-related capabilities that might previously have been too expensive or time-consuming to build on premise.
Mckinsey research suggests that using cloud-powered technologies can accelerate the implementation of 47 percent of the representative decarbonization initiatives that are required to achieve the global 1.5° pathway by 2050.
The future for Alphabet is looking bright and green at the same time.