Google (GOOGL) DeepMind CEO Demis Hassabis downplayed concerns about China’s DeepSeek AI by stating that Google has superior AI technology, according to a report by CNBC, which cited an audio recording from a meeting. During the meeting, Hassabis addressed employee questions about DeepSeek’s success and noted that while the Chinese startup’s accomplishments are impressive, some of its claims are exaggerated.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks’ Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts’ recommendations with Your Smart Portfolio
He pointed out that DeepSeek’s reported AI training costs are likely only a fraction of the total cost and that the company probably relied on Western AI models and more hardware than disclosed. Hassabis said he was confident in Google’s AI strategy because the company has more efficient and better-performing models than DeepSeek. As a result, he believes Google is well-positioned to maintain its leadership in AI.
This discussion comes as U.S. tech giants, including Google, Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT), plan to invest billions of dollars in AI infrastructure, which is the opposite of DeepSeek’s more frugal approach to AI development. Meanwhile, Google executives also addressed employee questions about the company’s updated AI principles that no longer include a promise not to use AI for weapons or surveillance.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 27 Buys and 10 Holds assigned in the past three months. After a 30% rally in the past 12 months, the average GOOGL price target of $215.85 per share implies 16.5% upside potential from current levels.