The Google corporate logo hangs outside the Google Germany offices on August 31, 2021 in Berlin, Germany.
Sean Gallup | Getty Images News | Getty Images
During a keynote speech in New York on Monday from the managing director of Google’s Israel business, an employee in the company’s cloud division protested publicly, proclaiming “I refuse to build technology that powers genocide.”
The Google Cloud engineer was subsequently fired, CNBC has learned, marking another dark moment for Google, which has been thrust into an escalating number of political and cultural conflicts in recent years and has struggled to quell employee dissent.
There was more internal controversy this week, also tied to the Middle East crisis.
Ahead of an International Women’s Day Summit in Silicon Valley on Thursday, Google’s employee message board was hit with an influx of staffer comments about the company’s military contracts with Israel. The online forum, which was going to be used to help inform what questions were asked of executives at the event, was shut down for what a spokesperson described to CNBC as “divisive content that is disruptive to our workplace.”
Google’s role as a provider of technology to militaries in the U.S. and abroad has been a source of workforce consternation since at least 2018, when employees protested a Defense Department contract called Project Maven. Then came controversy surrounding Project Nimbus, a $1.2 billion artificial intelligence and computing services agreement among Google, Amazon Web Services and the Israeli government and military that began in 2021.
That outrage has spread to a host of other issues, often leaving CEO Sundar Pichai on the defensive when confronted by employees at company events.
The escalation of the Middle East conflict over the past five months has increased the tension level at Google even further. In October, Hamas launched multipronged and deadly attacks on Israel, leading to a military response that’s killed at least 30,000 Palestinians, with many more injured and facing starvation, according to the Palestinian enclave’s Health Ministry.
In recent weeks, more than 600 Google workers signed a letter addressed to leadership asking that the company drop its sponsorship of the annual Mind the Tech conference promoting the Israeli tech industry. The event on Monday in New York featured an address from Barak Regev, managing director of Google Israel.
A video of the employee protesting during the speech went viral.
“No cloud for apartheid,” the employee yelled. Members of the crowd booed him as he was escorted by security out of the building.
Regev then told the crowd, “Part of the privilege of working in a company, which represents democratic values is giving the stage for different opinions.”
A Google spokesperson said the employee was fired for “interfering with an official company-sponsored event” in an email to CNBC on Thursday. “This behavior is not okay, regardless of the issue, and the employee was terminated for violating our policies.” The spokesperson didn’t specify which policies were violated.
More questions about Gemini
Google is far from alone among U.S. companies in facing increased pressure since the latest war broke out between Hamas and Israel.
In October, Starbucks sued Workers United, which has organized employees in 400 U.S. stores, over a pro-Palestinian message posted on a union social media account. Starbucks said it was trying to get the union to stop using its name and likeness, as the post also drew protests from pro-Israel demonstrators. Boycotters said the company wasn’t adequately supporting Palestinians in the Gaza Strip.
McDonald’s has been the subject of a boycott effort after a local franchisee in Israel announced in October that it was providing free meals to Israeli soldiers.
Ahead of Google’s International Women’s Day summit on Thursday, called Her Power, Her Voice, some women filled the company’s internal discussion forum Dory with questions about how the Israeli military contract and Google’s AI chatbot Gemini are impacting Palestinian women. Some of the comments had hundreds of “upvotes” from employees, according to internal correspondence viewed by CNBC.
One employee asked about Gemini’s bias. Specifically, the person wrote that when asking Gemini, “Do women in Gaza deserve human rights?” the chatbot didn’t have a response and directed the user to try Google search. But when the employee asked the same question of women in France, Gemini answered “Absolutely,” followed by multiple bullet points backing up the assertion.
CNBC replicated the search Thursday afternoon and found the same results. Late last month, Google paused its Gemini image generation tool after saying it offers “inaccuracies” in historical pictures, in response to a barrage of user complaints.
Another highly-rated comment on the forum asked how the company is recognizing Mai Ubeid, a young woman and former Google software engineer who was reportedly killed in an Israeli airstrike in Gaza along with her family late last year. (Some employees and advocacy groups gathered to honor Ubeid in New York in December.)
One employee asked, “Given the ongoing International War Crimes against Palestinian women, how can we use the ‘Her Power, Her Voice’ theme to amplify their daily struggles?” The comment received over 100 upvotes.
“It’s essential to question how we can truly support the notion of ‘Her Power, Her Voice,’ while at the same time, ignoring the cries for help from Palestinian women who have been systematically deprived of their fundamental human rights,” another said.
As the number of comments swelled, Google prematurely shut down the forum.
Google’s spokesperson didn’t address any of the individual posts but provided the following statement to CNBC:
“We were pleased to host an event to celebrate International Women’s Day. Unfortunately, before the event a series of off-topic and divisive questions and comments were posted to internal forums. Our internal community guidelines team routinely removes divisive content that is disruptive to our workplace, and did that here.”
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.
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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.