Google (GOOGL) Advances in AI Reasoning to Compete with OpenAI

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Google (GOOGL, Financial) is making strides in artificial intelligence (AI) reasoning, aiming to catch up with OpenAI. Insiders have reported that multiple Google teams have been progressing in AI reasoning software, which excels in solving multi-step problems in fields such as mathematics and computer programming.

AI researchers at Google are developing reasoning models to achieve the next significant breakthrough in technology. Similar to OpenAI, Google is experimenting with a technique called "chain-of-thought prompt," which simulates human reasoning by generating a series of intermediate steps. This method, originally pioneered by Google, aims to significantly enhance the capability of large language models in complex reasoning tasks.

Google and OpenAI have been in fierce competition for dominance in the AI sector, especially since the launch of OpenAI's chatbot, ChatGPT. Some investors worry that the popular chatbot could eventually replace Google Search.

In response, Google has taken several measures to reclaim its leading position. These include merging top research labs to form the Google DeepMind division and fostering better collaboration between researchers and product teams. However, Google has been slower in releasing AI products compared to its competitors.

Following OpenAI's introduction of its 01 model in mid-September, some DeepMind employees were concerned about Google falling behind. However, with Google's recent achievements, the level of concern among employees has decreased.

Senior AI researcher and TrueMedia.org founder Oren Etzioni, who focuses on combating political misinformation, believes that despite Google's slower product rollout, it remains a formidable player in the AI field. Etzioni noted that Google's technical capabilities have always been top-notch, and they are cautious in launching products. He emphasized that the competition is a marathon, and everyone wants to win.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.