Alphabet (GOOGL) Shakes Up AI Race with Private AI Compute Launch
Google's parent company just dropped a bombshell in the AI arms race—and Wall Street's already pricing in the hype.
Private AI Compute promises enterprise-grade machine learning with a twist: total data isolation. No more messy cloud vulnerabilities or regulatory headaches—just raw algorithmic firepower behind corporate firewalls.
The tech giant's move comes as AI adoption hits critical mass across industries. Early tests show 40% faster model training versus legacy systems, though skeptics note Alphabet's track record of overpromising on moonshots.
One hedge fund analyst quipped: 'They'll monetize this the same way they monetize everything—by vacuuming up your data while pretending not to.'
For now, the market's buying the vision. GOOGL shares ticked up 2.3% in pre-market trading as speculators bet this could be Alphabet's next trillion-dollar baby.
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Private AI Compute runs entirely on Google’s own technology stack and uses its custom-made Tensor Processing Units. To protect user data, it uses a security feature called Titanium Intelligence Enclaves. This means that when a device connects to the cloud, it does so through encryption and remote attestation (a security check that proves a device is safe), which creates a secure environment where the data is processed.
Interestingly, the company made it clear that not even Google can see the data, as the sensitive information is only available to the user. Thanks to this technology, features on Pixel devices are becoming even more powerful without losing their privacy safeguards. For example, Magic Cue on the Pixel 10 now gives more accurate suggestions, and the Recorder app can now summarize voice recordings in more languages.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and seven Holds assigned in the past three months. Furthermore, the average GOOGL price target of $312.29 per share implies 9.1% upside potential.
