Alphabet is leading the AI race, according to Goldman Sachs

Alphabet (GOOGL, GOOG) showed off its latest AI offerings at its Google I/O developer conference on Tuesday. Goldman Sachs sees the Google parent company as the premier AI innovator as it integrates large language models across its businesses and products.

The Morning Brief weighs in on Alphabet's position in the AI landscape.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

All right, let's get to alphabet here.

Turning Te on Yahoo Finance A I announcements yesterday during its developers event, it's getting the streets attention.

Goldman Sachs feeling bullish saying that the tech giant is now the quote lead collection of A I machine learning driven businesses.

They are not the only one.

A number of analysts weighing in on the announcements that we got yesterday from Google Evercore I SI and that Google delivered in this year's IO against a mounting of hype and doubts here.

They also went on to say that they have successfully proven that it will remain a leading player within the A I race, Stel pretty much in line saying the same thing that they are encouraged by Google's ability to continually enhance its positioning across A I landscape.

And this comes at a time when I think the criticism towards alphabet has been that they have largely been viewed as a second player when it comes to Microsoft Microsoft with the open A I agreement clearly viewed as the biggest winner, biggest beneficiary so far, the leader within the A I race and Google largely viewed as second in that line.

And I think that that is starting to be debated.

Now, it has been debated, I should say actually for quite some time.

But the announcements that we got yesterday reaffirming some of those doubters out there in the street and really Google solidifying its position within this race and where they see the business going over the next several years.

It's really particularly interesting here, especially as Google or Alphabet had already experimented with what used to be barred, it was barred, then they got a rebrand.

Now it's Gemini.

And so there's even more investments that the company is putting forward as they've talked about on their earnings call as well, not just with the business to consume or element or application and how people are going to really feel the difference at the touch of their fingertips uh of generative A I for their own productivity.

But how companies and especially thinking about the cloud services side of the Google businesses on Google cloud, wherever they're able to overlay even more of their artificial intelligence of generative A I.

You can almost kind of annex that more into how sales force is talking about layering that into their cloud or Amazon web services is talking about layering it into their cloud services to supercharge some of the productivity and and data connectivity as well for their clients.

And so uh it's just a question of what is the accurate multiple that cut that the investors should assess on top of these companies as well going forward here and, and I think as we get a gauge on what the exact spending looks like, that's when we'll get a little bit more of a clearer picture on that.