OpenAI and Google has launched the latest version of AI agents, GPT-4o and Project Astra, just a few days ago.

I will be sharing what are some of the updates, what this means for us investors and the more important question, Is it time to buy Microsoft or Alphabet?

What’s so special about these AI agents?

They have gone multi-modal! They have now moved pass typing into the chatbox. Now, you can interact it as you would with other humans, by speaking too!

Multi-modal simply meant they can understand different modes of information, like text, audio, image, and video and generates output that is a combination of these modes.

Source: CNBC

Just to showcase how powerful these softwares have evolved, here are the videos by OpenAI and Google:

Source: OpenAI’s Youtube

Source: Google’s Youtube

Who’s AI Agent is better?

Mirror mirror on the wall, which AI agent is better of them all?

It’s not about who’s better. It’s more about how useful are they when incorporating with any organization’s existing data, workflow, operations and more. I believe each of them have their strengths and it really depends on how you use it.

Tools are tools. Unless you know how to use the tools effectively and meaningfully, otherwise no matter how powerful the tool is, you will just use it as if it’s a Google Search, but with certain elements of hallucination at times.

Furthermore, it’s hard to tell which is better since both AI agents just released recently. That said, it is more likely that both AI agents will be put to the test, so as to see which provider is preferred by different organizations.

I believe these AI agents will work best only if they have tapped into the data of the organizations. This seems like Google and OpenAI/Microsoft have now entered the space where Palantir’s AIP has been dominating and gaining traction. Does this means that Palantir’s edge over the other providers will be impacted? Stay tune as I share my insights soon! 

How valuable are these AI Agents?

Yes, it may be fun to get these bots to interact with each other, or helping you to relocate misplaced items.What this actually signifies is the age where these AI agents have even more potential for interesting use cases.

While the AI Agent has the function to locate your misplaced items, just like Project Astra has showcased, you may need something like Meta’s Smart Glasses. At the same time, you can’t possibly be holding your phone all the time right? 😅

I potentially see this as a game changer to companies and industries that have multiple and complex machineries, customer service industries, education, and creative among the others that I believe in the next few months, more use cases in the corporation level will start to surface. 

For a start, to see what are some use cases of these AI Agents, do check out Palantir’s AIP to have a glimpse of what is already available in the market.

Does it mean it’s time to buy Google?

Before you go all bullish about this updates, HOLD YOUR HORSES!

Let’s take a step back and look at the financials overview of Google (Alphabet) and its peers.

Source: GoodWhale App

While the potential and upside seems attractive, buying when valuations are high may be the risker thing to do. 

Valuations from the GoodWhale App shows that Alphabet may be on the undervalue side. However, this does not constitute to a recommendation to buy, sell or hold any of the securities mentioned.

Valuation is an art that defers from person to person. Everyone have different views and timeline for this investment to play out. 

Coming from a long-term investor myself, I believe Alphabet’s (Google) fundamentals are strong. It has a diversified revenue stream from advertising as well as Cloud. Not to mention, Google has dominated the mindshare when it comes to search, and it complements the AI Agents.

Source: Alphabet’s Q1 2024 Form 10-Q

If you are an accumulator that does not spend too much time observing and tracking the stock market, because life is more than just about money, then a preferred strategy is to average in for Alphabet while doing some portfolio management.

Conclusion

With this technology advancing rapidly, there is no doubt that the upside or potential to this technology is huge. There are many players that are building their own AI agents and others that tap onto these AI agents to create even more value downstream.

What differentiates Alphabet from Microsoft or Meta is totally different as the use cases and the business models of these companies are slightly different. 

Alphabet (Google) has built it’s own AI Agent to complement the other offerings it has, from Search to Google Cloud. 

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