Gemini wins the benchmark, Alphabet loses $500 billion
Yesterday we saw Google launch Gemini 4 Carbon, its new frontier model. Now it is the new number one on the Artificial Analysis Intelligence Index v5, a popular ranking of AI models. That got 336 points on Hacker News. Gemini users can also now create and edit Docs, Sheets, slides and PDFs directly in the chat.
But Wall Street did not celebrate. After its quarterly results, Alphabet had its worst day ever, losing about $500 billion in value. Ars Technica says Google admitted AI search makes less money than classic search. Its plan to fix that is more ads. Its negative cash flow grew to $9.06 billion.
The spending race goes on everywhere. Amazon's CEO says AWS will become a $1 trillion business, but must keep spending big first. Microsoft shared Azure's revenue in dollars for the first time: $33.2 billion.
Building the best model does not mean AI pays for itself. If AI answers earn less, the bill may come back to us as ads inside those answers.
