Pichai showcases Gemini 2.5 Pro's advancements amid mixed investor reactions at Google I/O

As Google unveils its $249.99 AI subscription service, investor confidence wavers despite promising advancements in Gemini 2.5 Pro, highlighting the ongoing tension between innovation and market expectations.

Sources:
CnbcTheregister+1
Updated 56m ago
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Sources: TheregisterCnbc
Sundar Pichai, CEO of Alphabet, showcased the advancements of Gemini 2.5 Pro during the 17th annual Google I/O developer conference, emphasizing its Elo benchmark score of 1448. This score marks a significant improvement over previous versions, including Gemini 2.0 Pro at 1379 and Gemini 1.5 Pro at 1249.

Despite the technological advancements, investor reactions were mixed, with Alphabet shares dropping 1.2% during the keynote. Analysts noted that the dampened investor mood regarding AI does not reflect the ongoing corporate priorities to leverage technology for new revenue streams.

Pichai attributed Gemini's success to Google's full-stack approach and highlighted the capabilities of the 7th generation Tensor Processing Unit (TPU), Ironwood, which delivers 10x performance compared to its predecessor and can achieve 42.5 exaFLOPS of compute per pod. He also introduced a new subscription service, Google AI Ultra, priced at $249.99 per month, which offers 30 terabytes of storage and aims to attract premium users.

The new service includes the flagship AI app Gemini with the recently announced DeepThink mode, designed for deep research, indicating Google's strategy to monetize its AI products amid changing market dynamics.
Sources: TheregisterCnbc
Sundar Pichai unveiled advancements in Gemini 2.5 Pro at Google I/O, highlighting its Elo benchmark score of 1448. However, investor reactions were mixed, with Alphabet shares dropping 1.2% during the keynote as AI updates were met with skepticism about their immediate impact on revenue streams.
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The Headline

Key announcements and investor reactions

"We are working to bring this to live with something we call Personal Context," said Pichai. "With your permission, Gemini models can use relevant context across your Google Apps, in a way that is private, transparent and fully under your control."
Sundar Pichai
CEO of Alphabet
Theregister
Key Facts
  • Sundar Pichai opened Google I/O, emphasizing AI's transformational power and its importance in the company's future.Theregister
  • Google launched a new AI subscription service called 'Google AI Ultra', priced at $249.99 per month, offering 30 terabytes of storage.Cnbc
  • During the keynote, Alphabet stock slid 1.2% as investor sentiment dampened over the AI updates announced.1
  • Gemini 2.5 Pro was highlighted by Pichai, showcasing its advancements with an Elo benchmark score of 1448, surpassing previous versions.Theregister
  • Investor mood remains cautious as many AI updates are scheduled to roll out in the coming weeks and months.1
  • AI continues to be a critical theme for markets, despite mixed reactions from investors during the keynote.Cnbc
Key Stats at a Glance
Percentage drop in Alphabet shares
1.2%
1
Monthly cost of Google AI Ultra subscription
$249.99
Cnbc
Elo benchmark score of Gemini 2.5 Pro
1448
Theregister

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Background Context

Context on AI advancements and subscription service

Key Facts
  • Google AI Ultra could attract premium users willing to pay a larger price to use Google's products as the company tries to monetize its AI offerings.Cnbc
  • Pichai credits Gemini's success to Google's full-stack approach to infrastructure, highlighting the performance of the 7th generation TPU.Theregister
  • Gemini 2.5 Pro includes a 'DeepThink' mode for deep research, enhancing its capabilities for users.Cnbc
Key Stats at a Glance
Performance capability of 7th generation TPU
42.5 exaFLOPS
Theregister
Storage offered by Google AI Ultra
30 terabytes
Cnbc
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