Sundar Pichai, CEO of Google and Alphabet, speaks on artificial intelligence during a Bruegel think tank conference in Brussels, Belgium, on Jan. 20, 2020.
Yves Herman | Reuters
Google on Wednesday announced MedLM, a suite of new health-care-specific artificial intelligence models designed to help clinicians and researchers carry out complex studies, summarize doctor-patient interactions and more.
The move marks Google’s latest attempt to monetize health-care industry AI tools, as competition for market share remains fierce between competitors like Amazon and Microsoft. CNBC spoke with companies that have been testing Google’s technology, like HCA Healthcare, and experts say the potential for impact is real, though they are taking steps to implement it carefully.
The MedLM suite includes a large and a medium-sized AI model, both built on Med-PaLM 2, a large language model trained on medical data that Google first announced in March. It is generally available to eligible Google Cloud customers in the U.S. starting Wednesday, and Google said while the cost of the AI suite varies depending on how companies use the different models, the medium-sized model is less expensive to run.
Google said it also plans to introduce health-care-specific versions of Gemini, the company’s newest and “most capable” AI model, to MedLM in the future.
Aashima Gupta, Google Cloud’s global director of health-care strategy and solutions, said the company found that different medically tuned AI models can carry out certain tasks better than others. That’s why Google decided to introduce a suite of models instead of trying to build a “one-size-fits-all” solution.
For instance, Google said its larger MedLM model is better for carrying out complicated tasks that require deep knowledge and lots of compute power, such as conducting a study using data from a health-care organization’s entire patient population. But if companies need a more agile model that can be optimized for specific or real-time functions, such as summarizing an interaction between a doctor and patient, the medium-sized model should work better, according to Gupta.
Real-world use cases
A Google Cloud logo at the Hannover Messe industrial technology fair in Hanover, Germany, on Thursday, April 20, 2023.
Krisztian Bocsi | Bloomberg | Getty Images
When Google announced Med-PaLM 2 in March, the company initially said it could be used to answer questions like “What are the first warning signs of pneumonia?” and “Can incontinence be cured?” But as the company has tested the technology with customers, the use cases have changed, according to Greg Corrado, head of Google’s health AI.
Corrado said clinicians don’t often need help with “accessible” questions about the nature of a disease, so Google hasn’t seen much demand for those capabilities from customers. Instead, health organizations often want AI to help solve more back-office or logistical problems, like managing paperwork.
“They want something that’s helping them with the real pain points and slowdowns that are in their workflow, that only they know,” Corrado told CNBC.
For instance, HCA Healthcare, one of the largest health systems in the U.S., has been testing Google’s AI technology since the spring. The company announced an official collaboration with Google Cloud in August that aims to use its generative AI to “improve workflows on time-consuming tasks.”
Dr. Michael Schlosser, senior vice president of care transformation and innovation at HCA, said the company has been using MedLM to help emergency medicine physicians automatically document their interactions with patients. For instance, HCA uses an ambient speech documentation system from a company called Augmedix to transcribe doctor-patient meetings. Google’s MedLM suite can then take those transcripts and break them up into the components of an ER provider note.
Schlosser said HCA has been using MedLM within emergency rooms at four hospitals, and the company wants to expand use over the next year. By January, Schlosser added, he expects Google’s technology will be able to successfully generate more than half of a note without help from providers. For doctors who can spend up to four hours a day on clerical paperwork, Schlosser said saving that time and effort makes a meaningful difference.
“That’s been a huge leap forward for us,” Schlosser told CNBC. “We now think we’re going to be at a point where the AI, by itself, can create 60-plus percent of the note correctly on its own before we have the human doing the review and the editing.”
Schlosser said HCA is also working to use MedLM to develop a handoff tool for nurses. The tool can read through the electronic health record and identify relevant information for nurses to pass along to the next shift.
Handoffs are “laborious” and a real pain point for nurses, so it would be “powerful” to automate the process, Schlosser said. Nurses across HCA’s hospitals carry out around 400,000 handoffs a week, and two HCA hospitals have been testing the nurse handoff tool. Schlosser said nurses conduct a side-by-side comparison of a traditional handoff and an AI-generated handoff and provide feedback.
With both use cases, though, HCA has found that MedLM is not foolproof.
Schlosser said the fact that AI models can spit out incorrect information is a big challenge, and HCA has been working with Google to come up with best practices to minimize those fabrications. He added that token limits, which restrict the amount of data that can be fed to the model, and managing the AI over time have been additional challenges for HCA.
“What I would say right now, is that the hype around the current use of these AI models in health care is outstripping the reality,” Schlosser said. “Everyone’s contending with this problem, and no one has really let these models loose in a scaled way in the health-care systems because of that.”
Even so, Schlosser said providers’ initial response to MedLM has been positive, and they recognize that they are not working with the finished product yet. He said HCA is working hard to implement the technology in a responsible way to avoid putting patients at risk.
“We’re being very cautious with how we approach these AI models,” he said. “We’re not using those use cases where the model outputs can somehow affect someone’s diagnosis and treatment.”
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Google also plans to introduce health-care-specific versions of Gemini to MedLM in the future. Its shares popped 5% after Gemini’s launch earlier this month, but Google faced scrutiny over its demonstration video, which was not conducted in real time, the company confirmed to Bloomberg.
In a statement, Google told CNBC: “The video is an illustrative depiction of the possibilities of interacting with Gemini, based on real multimodal prompts and outputs from testing. We look forward to seeing what people create when access to Gemini Pro opens on December 13.”
Corrado and Gupta of Google said Gemini is still in early stages, and it needs to be tested and evaluated with customers in controlled health-care settings before the model rolls out through MedLM more broadly.
“We’ve been testing Med-PaLM 2 with our customers for months, and now we’re comfortable taking that as part of MedLM,” Gupta said. “Gemini will follow the same thing.”
Schlosser said HCA is “very excited” about Gemini, and the company is already working out plans to test the technology, “We think that may give us an additional level of performance when we get that,” he said.
Another company that has been using MedLM is BenchSci, which aims to use AI to solve problems in drug discovery. Google is an investor in BenchSci, and the company has been testing its MedLM technology for a few months.
Liran Belenzon, BenchSci’s co-founder and CEO, said the company has merged MedLM’s AI with BenchSci’s own technology to help scientists identify biomarkers, which are key to understanding how a disease progresses and how it can be cured.
Belenzon said the company spent a lot of time testing and validating the model, including providing Google with feedback about necessary improvements. Now, Belenzon said BenchSci is in the process of bringing the technology to market more broadly.
“[MedLM] doesn’t work out of the box, but it helps accelerate your specific efforts,” he told CNBC in an interview.
Corrado said research around MedLM is ongoing, and he thinks Google Cloud’s health-care customers will be able to tune models for multiple different use cases within an organization. He added that Google will continue to develop domain-specific models that are “smaller, cheaper, faster, better.”
Like BenchSci, Deloitte tested MedLM “over and over” before deploying the technology to health-care clients, said Dr. Kulleni Gebreyes, Deloitte’s U.S. life sciences and health-care consulting leader.
Deloitte is using Google’s technology to help health systems and health plans answer members’ questions about accessing care. If a patient needs a colonoscopy, for instance, they can use MedLM to look for providers based on gender, location or benefit coverage, as well as other qualifiers.
Gebreyes said clients have found that MedLM is accurate and efficient, but it’s not always great at deciphering a user’s intent. It can be a challenge if patients don’t know the right word or spelling for colonoscopy, or use other colloquial terms, she said.
“Ultimately, this does not substitute a diagnosis from a trained professional,” Gebreyes told CNBC. “It brings expertise closer and makes it more accessible.”
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.