Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California.
Anna Moneymaker | Getty Images
Google and Alphabet CEO Sundar Pichai said “every product of every company” will be impacted by the quick development of AI, warning that society needs to prepare for technologies like the ones it’s already launched.
In an interview with CBS’ “60 Minutes” aired on Sunday that struck a concerned tone, interviewer Scott Pelley tried several of Google’s AI projects and said he was “speechless” and felt it was “unsettling,” referring to the human-like capabilities of products like Google’s chatbot Bard.
“We need to adapt as a society for it,” Pichai told Pelley, adding that jobs that would be disrupted by AI would include “knowledge workers,” including writers, accountants, architects and, ironically, even software engineers.
“This is going to impact every product across every company,” Pichai said. “For example, you could be a radiologist, if you think about five to ten years from now, you’re going to have an AI collaborator with you. You come in the morning, let’s say you have a hundred things to go through, it may say, ‘these are the most serious cases you need to look at first.'”
Pelley viewed other areas with advanced AI products within Google, including DeepMind, where robots were playing soccer, which they learned themselves, as opposed to from humans. Another unit showed robots that recognized items on a countertop and fetched Pelley an apple he asked for.
When warning of AI’s consequences, Pichai said the scale of the problem of disinformation and fake news and images will be “much bigger,” adding that “it could cause harm.”
Last month, CNBC reported that internally, Pichai told employees that the success of its newly launched Bard program now hinges on public testing, adding that “things will go wrong.”
Google launched its AI chatbot Bard as an experimental product to the public last month. It followed Microsoft’s January announcement that its search engine Bing would include OpenAI’s GPT technology, which garnered international attention after ChatGPT launched in 2022.
However, fears of the consequences of the rapid progress has also reached the public and critics in recent weeks. In March, Elon Musk, Steve Wozniak and dozens of academics called for an immediate pause in training “experiments” connected to large language models that were “more powerful than GPT-4,” OpenAI’s flagship LLM. Over 25,000 people have signed the letter since then.
“Competitive pressure among giants like Google and startups you’ve never heard of is propelling humanity into the future, ready or not,” Pelley commented in the segment.
Google has launched a document outlining “recommendations for regulating AI,” but Pichai said society must quickly adapt with regulation, laws to punish abuse and treaties among nations to make AI safe for the world as well as rules that “Align with human values including morality.”
“It’s not for a company to decide,” Pichai said. “This is why I think the development of this needs to include not just engineers but social scientists, ethicists, philosophers, and so on.”
When asked whether society is prepared for AI technology like Bard, Pichai answered, “On one hand, I feel no, because the pace at which we can think and adapt as societal institutions, compared to the pace at which the technology is evolving, there seems to be a mismatch.”
However, he added that he’s optimistic because compared with other technologies in the past, “the number of people who have started worrying about the implications” did so early on.
From a six word prompt by Pelley, Bard created a tale with characters and plot that it invented, including a man who’s wife couldn’t conceive and a stranger grieving after a miscarriage and longing for closure. “I am rarely speechless,” Pelley said. “The humanity at super human speed was a shock.”
Pelley said he asked Bard why it helps people and it replied “because it makes me happy,” which Pelley said shocked him. “Bard appears to be thinking,” he told James Manyika, a SVP Google hired last year as head of “technology and society.” Manyika responded that Bard is not sentient and not aware of itself but it can “behave like” it.
Pichai also said Bard has a lot of hallucinations after Pelley explained that he asked Bard about inflation and received an instant response with suggestions for five books that, when he checked later, didn’t actually exist.
Pelley also seemed concerned when Pichai said there is “a black box” with chatbots, where “you don’t fully understand” why or how it comes up with certain responses.
“You don’t fully understand how it works and yet you’ve turned it loose on society?” Pelley asked.
“Let me put it this way, I don’t think we fully understand how a human mind works either,” Pichai responded.
TikTok’s grip on the short-form video market is tightening, and the world’s biggest tech platforms are racing to catch up.
Since launching globally in 2016, ByteDance-owned TikTok has amassed over 1.12 billion monthly active users worldwide, according to Backlinko. American users spend an average of 108 minutes per day on the app, according to Apptoptia.
TikTok’s success has reshaped the social media landscape, forcing competitors like Meta and Google to pivot their strategies around short-form video. But so far, experts say that none have matched TikTok’s algorithmic precision.
“It is the center of the internet for young people,” said Jasmine Enberg, vice president and principal analyst at Emarketer. “It’s where they go for entertainment, news, trends, even shopping. TikTok sets the tone for everyone else.”
Platforms like Meta‘s Instagram Reels and Google’s YouTube Shorts have expanded aggressively, launching new features, creator tools and even considering separate apps just to compete. Microsoft-owned LinkedIn, traditionally a professional networking site, is the latest to experiment with TikTok-style feeds. But with TikTok continuing to evolve, adding features like e-commerce integrations and longer videos, the question remains whether rivals can keep up.
“I’m scrolling every single day. I doom scroll all the time,” said TikTok content creator Alyssa McKay.
But there may a dark side to this growth.
As short-form content consumption soars, experts warn about shrinking attention spans and rising mental-health concerns, particularly among younger users. Researchers like Dr. Yann Poncin, associate professor at the Child Study Center at Yale University, point to disrupted sleep patterns and increased anxiety levels tied to endless scrolling habits.
“Infinite scrolling and short-form video are designed to capture your attention in short bursts,” Dr. Poncin said. “In the past, entertainment was about taking you on a journey through a show or story. Now, it’s about locking you in for just a few seconds, just enough to feed you the next thing the algorithm knows you’ll like.”
Despite sky-high engagement, monetizing short videos remains an uphill battle. Unlike long-form YouTube content, where ads can be inserted throughout, short clips offer limited space for advertisers. Creators, too, are feeling the squeeze.
“It’s never been easier to go viral,” said Enberg. “But it’s never been harder to turn that virality into a sustainable business.”
Last year, TikTok generated an estimated $23.6 billion in ad revenues, according to Oberlo, but even with this growth, many creators still make just a few dollars per million views. YouTube Shorts pays roughly four cents per 1,000 views, which is less than its long-form counterpart. Meanwhile, Instagram has leaned into brand partnerships and emerging tools like “Trial Reels,” which allow creators to experiment with content by initially sharing videos only with non-followers, giving them a low-risk way to test new formats or ideas before deciding whether to share with their full audience. But Meta told CNBC that monetizing Reels remains a work in progress.
While lawmakers scrutinize TikTok’s Chinese ownership and explore potential bans, competitors see a window of opportunity. Meta and YouTube are poised to capture up to 50% of reallocated ad dollars if TikTok faces restrictions in the U.S., according to eMarketer.
Watch the video to understand how TikTok’s rise sparked a short form video race.
The X logo appears on a phone, and the xAI logo is displayed on a laptop in Krakow, Poland, on April 1, 2025. (Photo by Klaudia Radecka/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Elon Musk‘s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion, according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
The AI firm last month acquired X in an all-stock deal that valued xAI at $80 billion and the social media platform at $33 billion.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said on X, announcing the deal. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
Read more CNBC tech news
Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.