Google Launches Gemini 3.8 Flash After Longest Losing Streak in Decade
Key Points
- Google launched Gemini 3.8 Flash on Wednesday, its third Flash model in six weeks, priced at 75 cents per million input tokens.
- Berkshire Hathaway CEO Greg Abel publicly endorsed Alphabet's AI position as a winner in the field.
- A federal judge rejected the Justice Department's push to force Google to sell its ad exchange on Wednesday, marking another antitrust victory.
Despite the momentum, analyst Gil Luria at D.A. Davidson said the new model "keeps Google in the race, but probably won't change the fact they are a distant third in the enterprise market." Luria recommended holding the stock. Gemini Enterprise is adding pay-as-you-go pricing with token discounts of up to 20%, monthly caps on agent spending, and a zero-dollar base subscription option—pricing Google claims beats Microsoft and Anthropic's recurring seat fees and separate product licenses.
Google's scale provides a strategic advantage. Nearly three-quarters of Google Cloud customers already use its AI products, with those customers spending about 50% more than their original commitments, according to Google Cloud CEO Thomas Kurial.
Read Next
Thyme Care Raises $125M, Valuation Tops $2 Billion
11 hours ago
Meta's $18 Billion Settlement Clears Path for AI Product Launches
19 hours ago
Demis Hassabis, who moved from CEO of DeepMind to chairman following last month's reorganization, outlined the company's vision at Wednesday's G20 Innovation meeting. Hassabis described a future where Gemini serves as a general-purpose layer coordinating cheaper, specialized models and agents—a strategy prioritizing breadth alongside raw model capability.
Separately on Wednesday, a federal judge rejected the Justice Department's push to force Google to sell its ad exchange, marking another victory for the company in antitrust litigation. Berkshire Hathaway CEO Greg Abel also offered public endorsement, telling CNBC's Becky Quick that the company views Alphabet as a winner in AI, partly based on how its portfolio companies use Google's technology.
Related coverage: Thyme Care Raises $125M, Valuation Tops $2 Billion
Google's stock rose 0.6% on Wednesday but remains under pressure after dropping more than 1% Tuesday. The company faces a fundamental investor challenge: it is spending enormous sums on AI infrastructure and counting on growth and market share gains to deliver returns over the longer term. Near-term stock performance suggests those gains have not yet convinced markets of the company's recovery.
What This Means
Google's strategy of leveraging existing customer relationships and cloud scale while positioning Gemini as a coordination layer rather than competing for best-in-class performance may differentiate it from OpenAI and Anthropic. However, the analyst assessment placing Google third in enterprise AI suggests the company needs demonstrated revenue acceleration from these product launches to reverse sentiment. Watch for Q4 earnings calls and cloud revenue growth metrics as indicators of whether these September launches translate to market share gains.
Sources: CNBC and other international news outlets.
Disclaimer: This article was produced with AI assistance based on publicly available news sources. While we strive for accuracy, NewsOracle makes no warranty as to the completeness or accuracy of the information. Errors and omissions may occur. Readers should independently verify all information before acting on it. NewsOracle does not intend to defame any individual or organisation and accepts no liability for any loss or damage arising from reliance on this content. Content is for informational purposes only and does not constitute legal, financial, medical, or professional advice. All rights reserved. Unauthorised reproduction prohibited.
NewsOracle Editorial
The NewsOracle Tech Desk covers breaking technology news including AI, Apple, Google, Tesla, Meta, OpenAI and product launches.
Latest coverage: Google
