Google unveiled updates to its Gemini family of large language models, including a new product line with budget-friendly options designed to rival the cost-efficiency of Chinese competitor DeepSeek. The move comes amidst investor scrutiny over the high expenses associated with developing and deploying AI models.
SAN FRANCISCO - Alphabet's Google on Wednesday announced updates to its Gemini family of large language models , including a new product line with competitive pricing to low-cost artificial intelligence models like that of Chinese rival DeepSeek. The tech giant offers several versions of Gemini that vary in price and performance. It already offered a lightweight variant known as Flash, but its new Flash-Lite model is even cheaper. On Wednesday, Google released Gemini 2.
0 Flash to the general public after previewing it to developers in December. It also launched Flash-Lite and released a new version of its flagship Pro model into test phases. Google created Flash-Lite after receiving positive feedback about the 1.5 version of Flash, Koray Kavukcuoglu, chief technology officer of Google's DeepMind AI lab, said in a press release. Gemini 2.0 Flash is costlier than its predecessor. The cost to develop AI models and, in turn, the cost to use them have come under investor scrutiny in recent weeks after DeepSeek revealed it spent less than $6 million on the final training run of a model. Developers at leading U.S. AI firms said the total cost was likely magnitudes larger. Still, DeepSeek's rise drew questions on the earnings calls of Alphabet and rivals like Microsoft and OpenAI about the sustainability of their large-scale AI investments. Google's new pricing strategy appears to be a direct response to these concerns, aiming to make its AI technology more accessible and cost-effective.
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