Last updated: March 17, 2023 at 1:17 PM ET
First published: March 17, 2023 at 12:32 PM ET
Could Alphabet Inc.’s foray into artificial intelligence, Bard, ‘blow a hole’ in its margins? UBS analyst Lloyd Walmsley posed the question in a note on Thursday. After careful consideration, he expects the costs to drop quickly. “We see a cost risk associated with integrating generative AI into Google’s search results,” Walmsley wrote in reiterating a buy rating on Google stock. “We’re seeing a lot of evidence in recent weeks that costs are coming down quickly, including OpenAI announcing that it managed to reduce ChatGPT’s costs by 90% between December and March.” Google is facing increasing pressure…
Could Alphabet Inc.’s foray into artificial intelligence, Bard, ‘blow a hole’ in its margins? UBS analyst Lloyd Walmsley posed the question in a note on Thursday. After careful consideration, he expects the costs to drop quickly. “We see a cost risk associated with integrating generative AI into Google’s search results,” Walmsley wrote in reiterating a buy rating on Google stock. “We’re seeing a lot of evidence in recent weeks that costs are coming down quickly, including OpenAI announcing that it managed to reduce ChatGPT’s costs by 90% between December and March.” Google is facing increasing pressure from Microsoft Corporation.
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whose investment in OpenAI gives it a technological edge, according to several analysts.