Google CEO Sundar Pichai emphasized that the next major advancement for Gemini will rely on developing 'much larger base models.' During an earnings call, Pichai highlighted the importance of enhancing foundational models to keep pace with leading AI competitors. The CEO acknowledged that Google needs a more capable base model to close the gap with frontier AI models, which are expected to drive future innovation. Google is currently training Gemini 4 to meet the performance benchmarks required for these next-generation models. Pichai also noted that while the Flash 3.6 release demonstrated efficiency gains, the company is still working on a new frontier model that will be released monthly. The focus remains on balancing performance and cost, as seen with the successful Gemini Flash series, which has been widely adopted by users. Google's AI initiatives, including AI Mode and AI Max, are also contributing to increased search queries and ad engagement, though specific metrics remain undisclosed. The company reported revenue of $119.8 billion for Q2 2026, a 24 percent year-over-year increase, underscoring the growing impact of its AI-driven services. Google Cloud saw an 82 percent growth to $24.8 billion, while the Services segment rose 15 percent to $94.5 billion. The Gemini app now has 950 million monthly active users, up from 750 million in February. The company's AI metrics for Q2 2026 show continued expansion across its ecosystem, with AI Mode reaching one billion monthly active users since its global launch in October. Google claims AI Mode is driving more overall search queries, though the exact impact on website traffic compared to traditional search remains unclear. The cost per AI response in AI Mode has dropped to its lowest level since launch, even as Google uses more powerful models. This efficiency gain could provide a competitive edge in margins for serving AI. The CEO also pointed to specific weaknesses, such as coding and agentic coding, that the company is actively addressing. Google is still working on a new frontier model and plans to ship new models monthly, but Gemini 3.5 Pro is not part of that cadence, despite ongoing testing. Pichai said the company is focused on improving these areas to ensure Gemini remains competitive in the evolving AI landscape. The AI initiatives, including AI Mode and AI Max, are contributing to increased search queries and ad engagement, though specific metrics remain undisclosed. Google's AI metrics for Q2 2026 show continued expansion across its ecosystem, with AI Mode reaching one billion monthly active users since its global launch in October. Google claims AI Mode is driving more overall search queries, though the exact impact on website traffic compared to traditional search remains unclear. The cost per AI response in AI Mode has dropped to its lowest level since launch, even as Google uses more powerful models. This efficiency gain could provide a competitive edge in margins for serving AI. The CEO also pointed to specific weaknesses, such as coding and agentic coding, that the company is actively addressing. Google is still working on a new frontier model and plans to ship new models monthly, but Gemini 3.5 Pro is not part of that cadence, despite ongoing testing. Pichai said the company is focused on improving these areas to ensure Gemini remains competitive in the evolving AI landscape.
Source: thedecoder
