Alphabet (GOOGL) Expands AI Reach Amid Market Debate

Alphabet Inc. (NASDAQ:GOOGL) is one of Goldman Sachs’s top growth stock picks. On February 18, Google, an Alphabet Inc. (NASDAQ:GOOGL) subsidiary, launched Lyria 3 in beta inside the Gemini app. Lyria 3 is a Google DeepMind music-generation model. The model enables users to generate short music tracks from a prompt or by uploading a photo, and in some cases a video.

Google said Lyria 3 improves on earlier Lyria models in three main ways. First, it can generate lyrics for you, and, second, gives you more control over style, vocals, tempo, and, third, it can create more realistic and musically complex tracks. The company added that users can use Lyria 3 to describe genre or mood or memory or inside joke and upload media and Gemini composes music that fits the mood.

In a separate update, on February 17, Citizens JMP analyst Andrew Boone maintained a Market Outperform rating on Alphabet and kept his $385 price target unchanged. Boone stated that Alphabet has the ability to grow its search business in an era of advancing artificial intelligence.

The analyst argued that, contrary to fears that AI would erode Google’s dominance in search, the technology’s rise instead enlarges the total pool of queries that search engines can serve. More specifically, Boone argued that AI-powered search can now extract commercial intent from questions that were previously treated as purely informational. This means that queries that once generated no advertising revenue can now be connected to advertisers, which effectively expands Google’s monetizable search universe.

Alphabet Inc. (NASDAQ:GOOGL) is a technology company. It operates businesses including Google Search, YouTube, Google Cloud, and Android, and develops products in areas such as advertising, cloud computing, and artificial intelligence.

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Disclosure: None. This article is originally published at Insider Monkey.