Google launches Gemini 3.1 Flash-Lite, directly addressing Wall Street's concerns over its AI spending, which had previously impacted Alphabet (GOOGL)'s stock price. This new model costs only $0.25 per million tokens, one-eighth of the Pro model price, while response speed has increased by 2.5 times. The shift to efficient AI aims to demonstrate that Google can scale without compromising profit margins. The company also mandates developers to migrate to the 3.1 architecture by March 9, a move expected to improve efficiency before the next earnings report and potentially boost the stock price.
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Google launches Gemini 3.1 Flash-Lite, directly addressing Wall Street's concerns over its AI spending, which had previously impacted Alphabet (GOOGL)'s stock price. This new model costs only $0.25 per million tokens, one-eighth of the Pro model price, while response speed has increased by 2.5 times. The shift to efficient AI aims to demonstrate that Google can scale without compromising profit margins. The company also mandates developers to migrate to the 3.1 architecture by March 9, a move expected to improve efficiency before the next earnings report and potentially boost the stock price.