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This article is a follow-up to: Google may break up as the US DOJ weighs options
Google’s latest move to reappoint Noam Shazeer as co-lead of its Gemini AI project marks a significant step in its ongoing efforts to maintain leadership in artificial intelligence. Shazeer, a former Google researcher and the founder of Character.AI, brings extensive expertise back to the company at a critical time when the tech giant is under increasing pressure to innovate in AI.
Shazeer’s appointment is particularly strategic, given his pioneering work in AI, including co-authoring a seminal 2017 research paper that significantly contributed to the current AI boom.
His return to Google, after leading a successful AI startup, highlights Google’s aggressive approach to not just developing but also retaining top AI talent.
While notable, such moves are not new – this move mirrors similar tactics by other tech giants like Amazon and Microsoft, which have also been acquiring key players in the AI space to bolster their own capabilities.
Picture: GOOG prices after Noam Shazeer returned to Google as co-lead for AI project, as observed on the VT Markets app.
How have the markets reacted to these news? Looking at the charts, the chart for Google (GOOG) reflects a recent downtrend, with the stock closing at $165.54 after reaching a high of $170.39. This 1.68% decline comes despite these positive news about Shazeer’s appointment.
From a technical perspective, the chart shows that GOOG has been trading below key Exponential Moving Averages (EMAs), particularly the 72-period EMA, indicating bearish momentum. The MACD indicator is also bearish, with the MACD line below the signal line and the histogram showing increasing negative momentum. This suggests that the stock could face further downward pressure in the short term.
Despite the current decline, the integration of advanced AI models into Google’s product lineup could be a significant long-term growth driver.
Participants may want to watch for signs of a reversal in the stock’s momentum, particularly if more details about Gemini and its potential impact on Google’s business are released. Key support levels to monitor include $164, with resistance around $170, where the stock recently peaked.
Gemini, the AI project which Shazeer will co-lead, is a line of AI models being developed by Google’s DeepMind division. These models are expected to be integrated into several Google products, including Search and Pixel smartphones, positioning Google to compete even more fiercely in the AI-driven market.
Google’s decision to bring Shazeer back on board could signal an increased focus on AI innovation, which may drive positive sentiment around the stock. The integration of advanced AI models like Gemini into Google’s core products could also lead to market speculation about the company’s future earnings potential, particularly in AI-related revenue streams.
However, market participants should also keep risk management intact, as the litigation in antitrust laws violation remains unsettled.
These legal hurdles could introduce volatility in the stock in the coming weeks.
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