Gemini Surges Ahead of Meta in Agentic AI Race

Meta's (NASDAQ:META) agentic AI, Muse Spark 1.1, was deployed across various platforms in late July, but it appears that Google's (NASDAQ:GOOGL) Gemini has taken a structural edge over its rival.

Gemini is replacing Google Assistant at the OS level across Android, Maps, Gmail, and Google Pay, giving it a significant advantage over Muse.

Google's revenue rose 24.23% to $119.80 billion in Q2, with Cloud growing 82%, while Meta's revenue grew 27.96%, but its EPS of $6.18 missed the estimate due to legal charges and severance costs.

The biggest difference between the two companies is their spending habits - Google spent $44.92 billion on capex in Q2, whereas Meta guided 2026 capex to $130-$145 billion.