Google Gains Speed in the AI Race — But Leaked Internal Email Says It Has No Moat

Still got it. That’s analysts’ reaction after Google’s I/O developer conference on Wednesday. Investors are already forgetting Google’s underwhelming debut of its AI chatbot Bard back in March.

Google is adding AI into a range of products, including Search, GSuite apps, its Android mobile operating system and cloud computing service.

Investor reaction was positive: Several analysts agreed that the event eased investor anxiety over Google’s ability to compete in AI.

• With the announcement, $GOOG is now outperforming $MSFT this year.
• Except $MSFT is trading at all-time highs, while $GOOG is still down nearly 22% from its peak.

But it’s still far too early to tell who’ll win the AI race — especially as venture capitalists pour billions into AI startups.

Who’ll pull ahead? Here’s a clue…

A leaked email from a Google researcher delivered some shocking news — “We have no moat. And neither does OpenAI…. We aren’t positioned to win this arms race, and neither is OpenAI.”

So who is? Surprisingly, the researcher said, “the one clear winner in all of this is Meta (NASDAQ:META)” — and their open-source Large Language Model Meta AI (LLaMa) which was leaked back in March.

Zuck creeping up behind competitors with a Kimura sneak attack.

AI gold rush: Palantir is Seeing “Unprecedented” Demand on Its AI PlatformGoogle Gains Speed in the AI Race — But Leaked Internal Email Says It Has No Moat