Google terminated 28 employees Wednesday, according to an internal memo viewed by CNBC, after a series of protests against labor conditions and the company’s contract to provide the Israeli government and military with cloud computing and artificial intelligence services.
The news comes one day after nine Google workers were arrested on trespassing charges Tuesday night after staging a sit-in at the company’s offices in New York and Sunnyvale, California, including a protest in Google Cloud CEO Thomas Kurian’s office.
Some of the arrested workers in New York and Sunnyvale, who spoke with CNBC earlier Wednesday, said that during the protest they were locked out of their work accounts and offices, placed on administrative leave and told to wait to return to work until being contacted by human resources.
On Wednesday evening, a memo sent by Chris Rackow, Google’s vice president of global security, told Googlers that “following investigation, today we terminated the employment of twenty-eight employees found to be involved. We will continue to investigate and take action as needed.”
The arrests, which were livestreamed on Twitch by participants, follow rallies outside Google offices in New York, Sunnyvale and Seattle, which attracted hundreds of attendees, according to workers involved. The protests were led by the “No Tech For Apartheid” organization, focused on Project Nimbus — Google and Amazon‘s joint $1.2 billion contract to provide the Israeli government and military with cloud computing services, including AI tools, data centers and other cloud infrastructure.
“This evening, Google indiscriminately fired over two dozen workers, including those among us who did not directly participate in yesterday’s historic, bicoastal 10-hour sit-in protests,” No Tech For Apartheid said in a statement, adding, “In the three years that we have been organizing against Project Nimbus, we have yet to hear from a single executive about our concerns. Google workers have the right to peacefully protest about terms and conditions of our labor. These firings were clearly retaliatory.”
Protesters in Sunnyvale sat in Kurian’s office for more than nine hours until their arrests, writing demands on Kurian’s whiteboard and wearing shirts that read “Googler against genocide.” In New York, protesters sat in a three-floor common space. Five workers from Sunnyvale and four from New York were arrested.
“On a personal level, I am opposed to Google taking any military contracts — no matter which government they’re with or what exactly the contract is about,” Cheyne Anderson, a Google Cloud software engineer based in Washington, told CNBC earlier Wednesday. “And I hold that opinion because Google is an international company and no matter which military it’s with, there are always going to be people on the receiving end … represented in Google’s employee base and also our user base.” Anderson had flown to Sunnyvale for the protest in Kurian’s office and was one of the workers arrested Tuesday.
“Google Cloud supports numerous governments around the world in countries where we operate, including the Israeli government, with our generally available cloud computing services,” a Google spokesperson told CNBC on Wednesday evening, adding, “This work is not directed at highly sensitive, classified, or military workloads relevant to weapons or intelligence services.”
The demonstrations show Google’s increased pressure from workers who oppose military use of its AI and cloud technology. Last month, Google Cloud engineer Eddie Hatfield interrupted a keynote speech from the managing director of Google’s Israel business stating, “I refuse to build technology that powers genocide.” Hatfield was subsequently fired. That same week, an internal Google employee message board was shut down after staffers posted comments about the company’s Israeli military contracts. A spokesperson at the time described the posts as “divisive content that is disruptive to our workplace.”
On Oct. 7, Hamas carried out deadly attacks on Israel, killing 1,200 and taking more than 240 hostages. The following day, Israel declared war and began implementing a siege of Gaza, cutting off access to power, food, water and fuel. At least 33,899 people have been killed in the Gaza Strip since that date, the enclave’s Health Ministry said Wednesday in a statement on Telegram. In January at the U.N.’s top court, Israel rejected genocide charges brought by South Africa.
“I think what happened yesterday is evidence that Google’s attempts to suppress all of the voices of opposition to this contract are not only not working but actually having the opposite effect,” Ariel Koren, a former Google employee who resigned in 2022 after leading efforts to oppose the Project Nimbus contract, told CNBC earlier Wednesday. “It’s really just creating more agitation, more anger and more commitment.”
The New York sit-in started at noon ET and ended around 9:30 p.m. ET. Security asked workers to remove their banner, which spanned two floors, about an hour into the protest, according to Hasan Ibraheem, a Google software engineer based in New York City and one of the arrested workers.
“I realized, ‘Oh, the place that I work at is very complicit and aiding in this genocide — I have a responsibility to act against it,'” Ibraheem told CNBC earlier Wednesday. Ibraheem added, “The fact that I am receiving money from Google and Israel is paying Google — I am receiving part of that money, and that weighed very heavily on me.”
The New York workers were released from the police station after about four hours.
The workers were also protesting their labor conditions — namely “that the company stop the harassment, intimidation, bullying, silencing, and censorship of Palestinian, Arab, Muslim Googlers — and that the company address the health and safety crisis workers, especially those in Google Cloud, are facing due to the potential impacts of their work,” according to a release by the campaign.
“A small number of employee protesters entered and disrupted a few of our locations,” a Google spokesperson told CNBC Wednesday evening. “Physically impeding other employees’ work and preventing them from accessing our facilities is a clear violation of our policies, and completely unacceptable behavior. After refusing multiple requests to leave the premises, law enforcement was engaged to remove them to ensure office safety. We have so far concluded individual investigations that resulted in the termination of employment for 28 employees, and will continue to investigate and take action as needed.”
Read the full memo below.
Googlers,
You may have seen reports of protests at some of our offices yesterday. Unfortunately, a number of employees brought the event into our buildings in New York and Sunnyvale. They took over office spaces, defaced our property, and physically impeded the work of other Googlers. Their behavior was unacceptable, extremely disruptive, and made co-workers feel threatened. We placed employees involved under investigation and cut their access to our systems. Those who refused to leave were arrested by law enforcement and removed from our offices.
Following investigation, today we terminated the employment of twenty-eight employees found to be involved. We will continue to investigate and take action as needed.
Behavior like this has no place in our workplace and we will not tolerate it. It clearly violates multiple policies that all employees must adhere to — including our Code of Conduct and Policy on Harassment, Discrimination, Retaliation, Standards of Conduct, and Workplace Concerns.
We are a place of business and every Googler is expected to read our policies and apply them to how they conduct themselves and communicate in our workplace. The overwhelming majority of our employees do the right thing. If you’re one of the few who are tempted to think we’re going to overlook conduct that violates our policies, think again. The company takes this extremely seriously, and we will continue to apply our longstanding policies to take action against disruptive behavior — up to and including termination.
You should expect to hear more from leaders about standards of behavior and discourse in the workplace.
Microsoft Chairman and CEO Satya Nadella speaks during the Microsoft May 20 Briefing event at Microsoft in Redmond, Washington, on May 20, 2024. Nadella unveiled a new category of PC on Monday that features generative artificial intelligence tools built directly into Windows, the company’s world leading operating system.
Jason Redmond | AFP | Getty Images
Microsoft on Wednesday announced a tier of its Copilot assistant for corporate users with a consumption-based pricing model. The new Microsoft 365 Copilot Chat option represents an alternative to the Microsoft 365 Copilot, which organizations have been able to pay for based on the number of employees with access to it.
The introduction shows Microsoft’s determination to popularize generative artificial intelligence software in the workplace. Several companies have adopted the Microsoft 365 Copilot since it became available for $30 per person per month in November 2023, but one group of analysts recently characterized the product push as “slow/underwhelming.”
Copilot Chat can be an on-ramp to Microsoft 365 Copilot, with a lower barrier to entry, Jared Spataro, Microsoft’s chief marketing officer for AI at work, said in a CNBC interview this week. Both offerings rely on artificial intelligence models from Microsoft-backed OpenAI.
Copilot Chat can fetch information from the web and summarize text in uploaded documents, and people using it can create agents that perform tasks in the background. It can enrich answers with information from customers’ files and third-party sources.
Unlike Microsoft 365 Copilot, Copilot Chat can’t be found in Office applications such as Word and Excel. People can reach Copilot Chat starting today in the Microsoft 365 Copilot app for Windows, Android and iOS. The app is formerly known as Microsoft 365 (Office). It’s also available from the web at m365copilot.com, a spokesperson said.
Some management teams have resisted paying Microsoft to give the 365 Copilot to thousands of employees because they weren’t sure how helpful it would be at the $30 monthly price. Costs will vary for the Copilot Chat depending on what employees do with it, but at least organizations won’t end up paying for nonuse.
“As one customer said to me, this model lets the business value prove itself,” Spataro said.
Microsoft tallies up charges for Copilot Chat based on the tally of “messages” that a client uses. Each “message” costs a penny, according to a blog post. Responses that draw on the client’s proprietary files cost 30 “messages” each. Every action that an agent takes on behalf of employees costs 25 “messages.”
“We’re talking a cent, 2 cents, 30 cents, and that is a very easy way for people to get started,” Spataro said.
Salesforce charges $2 per conversation for its Agentforce AI chat service, where employees can set up automated sales and customer service processes.
The number of people using Microsoft 365 Copilot every day more than doubled quarter over quarter, CEO Satya Nadella said in October, although he did not disclose how many were using it. But sign-ups have been mounting. UBS said in October that it had 50,000 Microsoft 365 Copilot licenses, and in November, Accenture committed to having 200,000 users of the tool.
Lemon8, a photo-sharing app by Bytedance, and RedNote, a Shanghai-based content-sharing platform, have seen a surge in popularity in the U.S. as “TikTok refugees” migrate to alternative platforms ahead of a potential ban.
Now a law that could see TikTok shut down in the U.S. threatens to ensnare these Chinese social media apps, and others gaining traction as TikTok-alternatives, legal experts say.
As of Wednesday, RedNote — known as Xiaohongshu in China — was the top free app on the U.S. iOS store, with Lemon8 taking the second spot.
While the legislation explicitly names TikTok and ByteDance, experts say its scope is broad and could open the door for Washington to target additional Chinese apps.
“Chinese social media apps, including Lemon8 and RedNote, could also end up being banned under this law,” Tobin Marcus, head of U.S. policy and politics at New York-based research firm Wolfe Research, told CNBC.
If the TikTok ban is upheld, it will be unlikely that the law will allow potential replacements to originate from China without some form of divestiture, experts told CNBC.
PAFACA automatically applies to Lemon8 as it’s a subsidiary of ByteDance, while RedNote could fall under the law if its monthly average user base in the U.S. continues to grow, said Marcus.
The legislation prohibits distributing, maintaining, or providing internet hosting services to any “foreign adversary controlled application.”
These applications include those connected to ByteDance or TikTok or a social media company that is controlled by a “foreign adversary” and has been determined to present a significant threat to national security.
The wording of the legislation is “quite expansive” and would give incoming president Donald Trump room to decide which entities constitute a significant threat to national security, said Carl Tobias, Williams Chair in Law at the University of Richmond.
Xiaomeng Lu, Director of Geo‑technology at political risk consultancy Eurasia Group, told CNBC that the law will likely prevail, even if its implementation and enforcement are delayed. Regardless, she expects Chinese apps in the U.S. will continue to be the subject of increased regulatory action moving forward.
“The TikTok case has set a new precedent for Chinese apps to get targeted and potentially shut down,” Lu said.
The fate of TikTok rests with Supreme Court after the platform and its parent company filed a suit against the U.S. government, saying that invoking PAFACA violated constitutional protections of free speech.
TikTok’s argument is that the law is unconstitutional as applied to them specifically, not that it is unconstitutional per se, said Cornell Law Professor Gautam Hans. “So, regardless of whether TikTok wins or loses, the law could still potentially be applied to other companies,” he said.
The law’s defined purview is broad enough that it could be applied to a variety of Chinese apps deemed to be a national security threat, beyond traditional social media apps in the mold of TikTok, Hans said.
Trump, meanwhile, has urged the U.S. Supreme Court to hold off on implementing PAFACA so he can pursue a “political resolution” after taking office. Democratic lawmakers have also urged Congress and President Joe Biden to extend the Jan. 19 deadline.
Synthesia is a platform that lets users create AI-generated clips with human avatars that can speak in multiple languages.
Synthesia
LONDON — Synthesia, a video platform that uses artificial intelligence to generate clips featuring multilingual human avatars, has raised $180 million in an investment round valuing the startup at $2.1 billion.
That’s more than than double the $1 billion Synthesia was worth in its last financing in 2023.
The London-based startup said Wednesday that the funding round was led by venture firm NEA with participation from Atlassian Ventures, World Innovation Lab and PSP Growth.
NEA counts Uber and TikTok parent company ByteDance among its portfolio companies. Synthesia is also backed by chip giant Nvidia.
Victor Riparbelli, CEO of Synthesia, told CNBC that investors appraised the businesses differently from other companies in the space due to its focus on “utility.”
“Of course, the hype cycle is beneficial to us,” Riparbelli said in an interview. “For us, what’s important is building an actually good business.”
Synthesia isn’t “dependent” on venture capital — as opposed to companies like OpenAI, Anthropic and Mistral, Riparbelli added.
These startups have raised billions of dollars at eye-watering valuations while burning through sizable amounts of money to train and develop their foundational AI models.
Read more CNBC reporting on AI
Synthesia’s not the only startup shaking up the world of video production with AI. Other startups offer solutions for producing and editing video content with AI, like Veed.io and Runway.
Meanwhile, the likes of OpenAI and Adobe have also developed generative AI tools for video creation.
Eric Liaw, a London-based partner at VC firm IVP, told CNBC that companies at the application layer of AI haven’t garnered as much investor hype as firms in the infrastructure layer.
“The amount of money that the application layer companies need to raise isn’t as large — and therefore the valuations aren’t necessarily as eye popping” as companies like Nvidia,” Liaw told CNBC last month.
Riparbelli said that money raised from the latest financing round would be used to invest in “more of the same,” furthering product development and investing more into security and compliance.
Last year, Synthesia made a series of updates to its platform, including the ability to produce AI avatars using a laptop webcam or phone, full-body avatars with arms and hands and a screen recording tool that has an AI avatar guide users through what they’re viewing.
On the AI safety front, in October Synthesia conducted a public red team test for risks around online harms, which demonstrated how the firm’s compliance controls counter attempts to create non-consensual deepfakes of people or use its avatars to encourage suicide, adult content or gambling.
The National Institute of Standards and Technology test was led by Rumman Chowdhury, a renowned data scientist who was formerly head of AI ethics at Twitter — before it became known as X under Elon Musk.
Riparbelli said that Synthesia is seeing increased interest from large enterprise customers, particularly in the U.S., thanks to its focus on security and compliance.
More than half of Synthesia’s annual revenue now comes from customers in the U.S., while Europe accounts for almost half.
Synthesia has also been ramping up hiring. The company recently tapped former Amazon executive Peter Hill as its chief technology officer. The company now employs over 400 people globally.
U.K. Technology Minister Peter Kyle said the investment “showcases the confidence investors have in British tech” and “highlights the global leadership of U.K.-based companies in pioneering generative AI innovations.”