Google introduces new class of cheap AI models as cost concerns intensify

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Google introduces new class of cheap AI models as cost concerns intensify

Google has unveiled updates to its Gemini family of large language models, introducing a new line aimed at competing with low-cost AI models from rivals like DeepSeek. The new models, including Flash-Lite, are designed to offer varying price points and performance levels, catering to a broader audience. This move comes as the tech giant faces scrutiny over the rising costs associated with AI development and deployment.

The release of Gemini 2.0 Flash and Flash-Lite reflects Google's strategy to remain competitive in the AI market, especially as DeepSeek has demonstrated significantly lower training costs. Despite the competitive pricing, Alphabet's shares have faced pressure due to investor concerns about capital expenditures in AI. The pricing structure for Gemini Flash-Lite is notably lower than that of OpenAI's models, indicating a strategic push to capture market share.

• Google introduces new AI models with competitive pricing against rivals.

• Investor scrutiny increases over AI development costs amid competitive landscape.

Key AI Terms Mentioned in this Article

Large Language Models

Large language models are AI systems designed to understand and generate human-like text, as seen in Google's Gemini updates.

Training Costs

Training costs refer to the expenses incurred in developing AI models, highlighted by DeepSeek's low spending.

Tokens

019 per million tokens.

Companies Mentioned in this Article

Google

Google is a leading tech company that develops AI models like Gemini to enhance language processing capabilities.

DeepSeek

DeepSeek is a Chinese AI company known for its cost-effective model training, influencing competitive pricing strategies in the market.

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