Alphabet's ambitious goal to reach 500 million users for its Google Gemini chatbot by the end of 2025 is facing challenges, as the company struggles to keep pace with competitors in the generative AI space. Despite launching an official iOS app for Gemini, reports indicate that Google is lagging behind rivals like ChatGPT in terms of paid subscribers. The Gemini app was ranked only 54th among free iPhone apps, while ChatGPT secured the 4th position, highlighting the competitive pressure Google faces in expanding its user base.
CEO Sundar Pichai has expressed confidence in Gemini's capabilities, claiming it surpasses those of its competitors. However, the current adoption rates suggest that Google needs to intensify its efforts to achieve its ambitious user target. The company's strategy to leverage lower costs and distribution advantages may help, but the market's response indicates that more aggressive measures might be necessary to close the gap with leading AI chatbots.
Alphabet (GOOGL) shares closed at $192.91 on January 16th, down 1.35% from the previous close of $195.55.