Search giant Google Inc. (GOOGL) recently acquired Jetpac Inc., an app exclusively available on Apple’s (AAPL) iOS for analyzing photos on the Internet to create city guides.
JetPac, a San Francisco-based company founded in 2011, compiles information extracted from photos gathered from social networks such as Facebook’s (FB) Instagram to generate city maps or guides. The software focuses on deep learning technology and analyzes the pictures of food, buildings, decor and people using artificial intelligence to offer an insight into city. It has three apps available on Apple’s App Store, namely Jetpac City Guides, Spotter and trainer app.
Given Google’s vast ecosystem of services, the latest addition to its portfolio could be very beneficial. JetPac’s AI could broaden Google’s efforts to enhance its local offerings and maps services on Google’s Navigation and Maps app, by helping it provide better directions. JetPac algorithms can also be applied to Google Now to boost the travel features offered within the app. It can also boost the offerings of Google+, an app which consists of loads of photo-related features.
Deep learning technology basically means the usage of algorithms to model representative behavior from seemingly abstract information. It is a tool that is widely used to develop artificial intelligence.
Following the acquisition, all the three apps will be withdrawn from the App Store and support for the same ceased from Sep 15 onwards. However, financial terms of the deal were not disclosed.
Google is a stable company with consistent revenue growth and profitability. It remains the dominant player in search across desktop and mobile platforms. To add to its capabilities and bolster its existing businesses, Google continues to acquire smaller companies with specialized technology and/or strong presence in chosen markets.
However, the impact of its acquisitions is not clear because Google usually keeps them small and says little about them. Intensifying competition from companies like Yahoo! (YHOO) and Facebook is also a concern.
Google currently has a Zacks Rank #3 (Hold).
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