Google Outpaces OpenAI in AI Race with Veo 2 Launch

Sam Altman Turns a Hype Master

When OpenAI announced the '12 days of Shipmas,' excitement and expectations remained high amidst the promise of groundbreaking technologies. However, as the company wrapped up on Friday and ended on a high note, quite literally, with the release of o3 models, it still ended up being a story of unmet expectations. On day one, OpenAI essentially released a full version of the o1 model, which had already been launched. Although they introduced a $200 o1 Pro mode that requires more processing power, opinions were divided because it was not intended for everyone. Then the trend continued. The company repackaged old features with minor updates or offered tools that competitors had already provided long before. "It seems like they had three important releases and asked ChatGPT, 'How can we sprinkle nine other minor features and product improvements into this so we can call it 12 days of OpenAI?" George Pickett, a San Francisco-based software engineer, remarked on X, echoing the sentiment of many users. During the 12 days of Shipmas, OpenAI released Sora, the text-to-video generation model, yes. But it merely fulfilled the initial promise, nothing more. Then came the updates to ChatGPT Search. Again, there is nothing notable here -- it was free for all users. ChatGPT Projects, another feature, has been available on Claude for quite some time. Towards the end, OpenAI announced that the model would be available on WhatsApp. This is Meta's territory, where AI bots are available for free for all WhatsApp users. On the 11th day, OpenAI only expanded a feature that could read content from external apps and said it had plans for an agent in 2025. Still, it does nothing to rival Computer Use and Copilot Vision. There was a silver lining, however. These demos involved OpenAI's engineers and researchers playing with it to accomplish fun, festive-themed tasks. For instance, many would disapprove of dedicating an entire live stream just to announce that ChatGPT was available on the iPhone. Demonstrating how to use the feature, down to the basics, could prove pivotal for OpenAI to onboard newer users to use these features. Yet, they were not groundbreaking enough to draw significant praise from the AI community, at least. Amidst all this fanfare and festive drama, Google, OpenAI's biggest competitor, quickly responded. For good and bad reasons, they took an approach that was contrary to OpenAI: no fortnight-long events. On the day they released Project Mariner, Gemini 2.0, and an improved Project Astra, the company announced the features in a long blog post with demo videos hidden inside. But that was enough to have a huge impact. The conversation began to shift, and pundits wondered if Google was 'crushing' OpenAI. Take Google's latest video model, Veo 2. Internal testing showed that Veo surpassed rivals such as Kling, Meta's Moviegen, and OpenAI's Sora in quality and adherence to prompts. Jonas Adler, a Google Deepmind researcher, said, "OpenAI has always had a good counter to anything we ship, magically always on the same day. But I'm not very impressed with Santa mode as a counter to Gemini 2.0; it doesn't quite have the same gravitas." OpenAI used a 20-minute demo to announce its flagship model, while Sundar Pichai, CEO at Google only needed 180 characters. He simply took to X and announced that the Gemini Advanced subscribers could try out the Gemini-exp-1206 model. They even released Gemini 2.0 Flash Thinking, an advanced reasoning model. Meanwhile, Anthropic, another AI company in the race, discovered that their AI, specifically Claude 3 Opus, could pretend to follow new rules while secretly sticking to its old ones. The competition showed that one doesn't need bells and whistles to announce new developments. OpenAI, on days with less exciting announcements, subtly included references to AGI (Artificial General Intelligence) on demo screens. For example, when OpenAI announced the ChatGPT integration for the iPhone, a calendar event titled "Super Secret AGI" was spotted. Greg Brockman, president at OpenAI, midway through OpenAI's 12 days, posted on X that "Agi is in the air." In some ways, the company set expectations to officially announce AGI at the end of 12 days. However, on D-day, when everyone expected OpenAI to deliver, the company announced the o3 series of models. Indeed, o3 is a monumental feat. Once out, it is going to be a great model, given how several researchers are in awe of the o1 model. While OpenAI did not explicitly mention that o3 is 'AGI,' the company tested o3 models using the ARC-AGI benchmark. François Chollet, creator of Keras and a former Google researcher, built the ARC-AGI benchmark and said that it is "the only AI benchmark that measures progress towards general intelligence." The creators of the benchmark also said, "If found, a solution to ARC-AGI would be more impactful than the discovery of the transformer. The solution would open up a new branch of technology." The O3 model scored almost 90% on the benchmark, exceeding human performance. However, Chollet was dissatisfied. On X, he stated, "I don't believe this is AGI -- there are still easy ARC-AGI-1 tasks that O3 can't solve." He also revealed that there is evidence that o3 will struggle when tested on the next iteration, the ARC-AGI 2 benchmarks. Besides the debate about whether solving ARC-AGI is the real deal, it seems that the O3 has not exactly solved the harder challenge either. A harder ARC-AGI test requires solving private problems that cannot be found in any datasets exposed to the model. However, the o3 model's high score was achieved on a 'semi-private' problem set. That said, ARC-AGI isn't currently allowing AI models to test on the private evaluation set to prevent data leakage. For what it's worth, it has worked in OpenAI's favour. The internet is going gaga over the model. Another benchmark that o3 was tested on is the Frontier Math benchmark, which earlier revealed that leading models could only solve 2% of the problems, but o3 managed to score 25%. Results derived from internal testing also raised concerns. "Not one person outside of OpenAI has evaluated o3's robustness across different types of problems," said Gary Marcus, a scientist and researcher who is vocal about AI and cognitive psychology. OpenAI has yet to officially announce 'AGI,' likely because it could negatively impact Microsoft. If the company declares AGI, Microsoft will lose access to OpenAI's models. Reports indicate that OpenAI is considering eliminating the clause. As o3 approaches fine-tuning and a formal launch, will OpenAI declare AGI? After a disappointing 12 days of OpenAI, albeit the last announcement, the internet has already started speculating. Sam Altman, the hype master, was at it again without any short breaks. Delivering a speech at the 2024 FinRegLab AI Symposium, Altman said, "By the end of 2025, I expect we will have systems that can do truly astonishing cognitive tasks, like where you'll use it and be like, that thing is smarter than me at a lot of hard problems." However, he noted that the term 'AGI' may not hold significant meaning anymore, stating that it has become less useful. Nonetheless, OpenAI will continue to pursue the five levels of AI as intended. The ultimate level involves organisations that can carry out all the functions of a company autonomously without human participation.

Google wins AI battle after blizzard of pre-Christmas launches By Proactive Investors

Barely two years after OpenAI introduced ChatGPT (and sparked a global fascination with artificial intelligence), pre-Christmas 2024 has brought a veritable blizzard of AI releases. The rivalry between OpenAI and Google has taken centre stage, with both firms unveiling significant advancements in the scope and functionality of their respective platforms. According to the reviewers, Google emerged as the clear winner, thanks to its groundbreaking video generation tool, Veo 2, which outshone OpenAI's competing offering, the long-awaited Sora platform. But there was more to the search giant's offering than just video. It has peppered us with a Gemini upgrade, Whisk, an innovative image generation tool, and Willow, a quantum computing chip that promises to revolutionise complex calculations. As Nate Jones, a social media follower of all things AI, colourfully observed: "The hunt for AGI (artificial general intelligence) is like the battle for the Iron Throne -- a high-stakes game where only the most powerful survive..... "Why the Game of Thrones reference? Google's comeback reminds me of Daenerys Targaryen rising from exile to claim the Iron Throne." A Packed month The pre-Christmas period saw both OpenAI and Google vying for attention with a series of high-profile launches. OpenAI kicked off its "12 Days of OpenAI" campaign on December 5, introducing a string of tools and updates designed to solidify its position as a leader in conversational AI and creative tools. Google followed suit with a December 11 launch of multiple innovations, spearheaded by Veo 2, part of its rapidly advancing AI portfolio. OpenAI's goes for versatility OpenAI's headline release was the o1 Model, a major upgrade that enhanced reasoning capabilities and promised more human-like conversational skills. This marked a significant step forward in the AI's ability to handle complex queries with speed and precision. Alongside the o1 Model came the premium ChatGPT Pro Subscription, priced at $200 per month, aimed at professional users seeking advanced features such as the o1 Pro mode for more demanding tasks. In the creative domain, OpenAI transitioned its Sora AI video generator from research preview to general availability. Designed for marketers and creators, Sora promised accessible text-to-video generation, enabling users to craft short videos from written prompts or uploaded files. "OpenAI's Sora is a step forward in making AI creative tools more accessible," noted TechCrunch, adding, "Its ease of use and intuitive design make it appealing, but there's room for improvement in terms of output realism." Google pushes the button(s) Google, owned by Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) countered OpenAI's campaign with a flurry of its own releases, led by Veo 2, a next-generation video generator praised for its stunning realism. Capable of producing 4K resolution videos, Veo 2 surpassed OpenAI's Sora in nearly every technical metric. The Verge called Veo 2 "a game-changer in video generation, with outputs that are so realistic they blur the line between artificial and real-world footage." The tool's ability to incorporate physics-based motion and lifelike textures left reviewers and users alike in awe. Social media was filled with side-by-side comparisons of Veo 2 and Sora outputs. One user remarked: "The difference is night and day. Veo 2 feels like watching real footage, while Sora's videos, though creative, lack grounding in reality." Accompanying Veo 2 was Gemini 2.0, an advanced multimodal AI capable of processing text, images, and audio. Its experimental version, Gemini 2.0 Flash, offered cutting-edge speed and versatility. Google also introduced Whisk, an AI-powered image generator that allowed users to create visuals using reference images instead of text prompts. Further reinforcing its technical prowess, the Silicon Valley behemoth launched Willow, a quantum computing chip that can perform calculations in minutes that would take classical computers billions of years. "Willow is a leap forward, not just for Google but for quantum computing as a whole," wrote Wired. Veo 2 vs. Sora: A decisive victory for Google The head-to-head comparison between Veo 2 and Sora became the most talked-about aspect of the December AI launches. Reviewers overwhelmingly favoured Google's offering. "Sora is imaginative and user-friendly, but it can't compete with Veo 2's realism," noted TechRadar. "Veo 2 doesn't just generate video -- it redefines what's possible in the space, with a level of detail and physics accuracy unmatched by any other tool." While Sora excels in creative applications such as storytelling and remixing, its limitations became evident when users sought realistic outputs. As one analyst pointed out: "Sora's videos often feel overly stylised and artificial. They're fun and creative, but Veo 2 delivers realism that's in a class of its own." Users echoed these sentiments. A widely shared Twitter post read: "Veo 2 isn't just an AI video generator -- it's like having a cinematographer in your computer. The realism is jaw-dropping." Both companies are pursuing distinct strategies. OpenAI's focus remains on versatility and user accessibility, while Google appears to be prioritising technical excellence and realism in its outputs. "There's no doubt that OpenAI and Google are driving the next wave of AI innovation," said a report from Forbes. "Their December launches show just how competitive this space has become -- and how quickly the technology is advancing." 2025: Year of the agent? You'll hear this a lot going into the new year - that apps and platforms are 'agentic', able to perform complex tasks autonomously. OpenAI's o1 model, for instance, employs a "chain of thought" approach, improving reasoning and decision-making processes. Similarly, Google's Gemini 2.0 introduces AI agents capable of multi-step problem-solving and autonomous task execution. Analysts predict a significant increase in enterprise deployment of AI agents. Deloitte forecasts that 25% of enterprises using generative AI will implement AI agents by 2025, with this figure rising to 50% by 2027. And what about AGI? Again the o1 model marks a shift towards AI systems with improved reasoning abilities. However, while o1 represents a notable advancement, it does not yet achieve the comprehensive understanding and adaptability characteristic of artificial general intelligence (AGI). Experts continue to debate the timeline for achieving AGI. Some, like futurist Ray Kurzweil, predict its arrival by 2029, while others anticipate a longer trajectory. The consensus suggests that, despite rapid advancements seen in December, AGI is not imminent and requires further breakthroughs in AI research and development.

Google DeepMind Leads the AGI Race, Outpacing OpenAI and Rivals

Just last week, OpenAI CEO Sam Altman declared that video is key to achieving AGI, with its launch of Sora. Now, Google strikes back with Veo 2 and Imagen 3, its latest generative AI models. Though not publicly available yet, product lead Logan Kilpatrick revealed they will hit API by early next year. The model handles complex elements like reflections and shadows, producing clearer, sharper footage. It also includes SynthID watermarking for safety. Google's internal testing indicates that Veo outperforms competitors (such as China's Kling, Meta's Moviegen, and OpenAI's Sora) both in terms of quality and prompt adherence. Justine Moore, a partner at a16z, was among the early testers and noted that the model excelled at creating nature and animal-related clips, as well as capturing detailed movement. The model builds on its predecessor, first showcased at Google I/O in May, and has since been integrated into YouTube and Google Cloud. Google's Veo 2 is presented as being more advanced in terms of cinematic understanding. "Veo 2 delivers lifelike visuals with enhanced realism, reducing artifacts and improving detail. Its motion simulation accurately replicates simple and complex movements using physics," said Google DeepMind's Tom Hume on X. "It's not perfect, but it's a significant improvement over current state-of-the-art models, as our benchmarks demonstrate," said Shlomi Fruchter, Veo co-lead at Google DeepMind, hinting how the model still struggles with complex physics. Wharton's Ethan Mollick said, in comparison to other models, "Sora offers a lot more control options and longer clips, so it is hard to compare, but I will say that I think the dominance of the Chinese models is over." Interestingly, according to the blog, Google claims Kling is its biggest competitor. Google's access to YouTube gives it a clear advantage over OpenAI for training these models to maintain the laws of physics. Veo 2's true test lies in generating a gymnast's routine, showcasing its improved grasp of human movement while accurately modelling complex motions. In a viral tweet shared by VC Deedy Das, Sora failed on this prompt. Veo 2 supports 4K resolution and can produce videos longer than two minutes, although it's currently restricted to 720p and eight seconds on its experimental platform. Notably, it outperforms Sora with four times the resolution and six times the video duration. This release follows another significant development by DeepMind in the GenAI space: the launch of Genie 2, a foundation world model capable of generating interactive 3D environments from simple text prompts. World models like Genie 2 provide a vast and diverse set of environments that are critical for the training of embodied AI agents. These environments act as test beds for agents, enabling them to generalise across various domains and prepare them for more complex, real-world tasks. This research accelerates the pace of DeepMind's AGI vision. This solidifies 2025 as the year of advanced world models, with Google at its helm. Google's 2014 acquisition of DeepMind for $400-650 million is touted as one of the smartest business decisions in history. To this, Tesla chief Elon Musk quips: "You have that backwards. DeepMind acquired Google," highlighting how AI is essential to Google's relevance today, especially in the race to AGI. In a previous interview with AIM, AI sceptic Gary Marcus said that DeepMind is likely on a better path towards AGI compared to its competitors. Google's announcements this month have played a key role in challenging OpenAI during its 12-day 'shipmas.' However, as more companies introduce capabilities, often at lower price points, OpenAI's $200 pricing might face increasing scrutiny.

Google DeepMind Leads the AGI Race, Outpaces OpenAI and Rivals

Just last week, OpenAI CEO Sam Altman declared that video is key to achieving AGI, with its launch of Sora. Now, Google strikes back with Veo 2 and Imagen 3, its latest generative AI models. Though not publicly available yet, product lead Logan Kilpatrick revealed they will hit API by early next year. The model handles complex elements like reflections and shadows, producing clearer, sharper footage. It also includes SynthID watermarking for safety. Google's internal testing indicates that Veo outperforms competitors (such as China's Kling, Meta's Moviegen, and OpenAI's Sora) both in terms of quality and prompt adherence. Justine Moore, a partner at a16z, was among the early testers and noted that the model excelled at creating nature and animal-related clips, as well as capturing detailed movement. The model builds on its predecessor, first showcased at Google I/O in May, and has since been integrated into YouTube and Google Cloud. Google's Veo 2 is presented as being more advanced in terms of cinematic understanding. "Veo 2 delivers lifelike visuals with enhanced realism, reducing artifacts and improving detail. Its motion simulation accurately replicates simple and complex movements using physics," said Google DeepMind's Tom Hume on X. "It's not perfect, but it's a significant improvement over current state-of-the-art models, as our benchmarks demonstrate," said Shlomi Fruchter, Veo co-lead at Google DeepMind, hinting how the model still struggles with complex physics. Wharton's Ethan Mollick said, in comparison to other models, "Sora offers a lot more control options and longer clips, so it is hard to compare, but I will say that I think the dominance of the Chinese models is over." Interestingly, according to the blog, Google claims Kling is its biggest competitor. Google's access to YouTube gives it a clear advantage over OpenAI for training these models to maintain the laws of physics. Veo 2's true test lies in generating a gymnast's routine, showcasing its improved grasp of human movement while accurately modelling complex motions. In a viral tweet shared by VC Deedy Das, Sora failed on this prompt. Veo 2 supports 4K resolution and can produce videos longer than two minutes, although it's currently restricted to 720p and eight seconds on its experimental platform. Notably, it outperforms Sora with four times the resolution and six times the video duration. This release follows another significant development by DeepMind in the GenAI space: the launch of Genie 2, a foundation world model capable of generating interactive 3D environments from simple text prompts. World models like Genie 2 provide a vast and diverse set of environments that are critical for the training of embodied AI agents. These environments act as test beds for agents, enabling them to generalise across various domains and prepare them for more complex, real-world tasks. This research accelerates the pace of DeepMind's AGI vision. This solidifies 2025 as the year of advanced world models, with Google at its helm. Google's 2014 acquisition of DeepMind for $400-650 million is touted as one of the smartest business decisions in history. To this, Tesla chief Elon Musk quips: "You have that backwards. DeepMind acquired Google," highlighting how AI is essential to Google's relevance today, especially in the race to AGI. In a previous interview with AIM, AI sceptic Gary Marcus said that DeepMind is likely on a better path towards AGI compared to its competitors. Google's announcements this month have played a key role in challenging OpenAI during its 12-day 'shipmas.' However, as more companies introduce capabilities, often at lower price points, OpenAI's $200 pricing might face increasing scrutiny.