Demis Hassabis is a celebrated name in artificial intelligence research. He’s a chess master and a neuroscientist. On Wall Street, he’s less known.
That may not be true for long. Hassabis is emerging as the face of Google’s mammoth AI effort and on Tuesday will take the stage at the annual developer’s conference, Google I/O, for the first time.
For an academic who’s credited with some of the most important breakthroughs in AI over the past decade, Hassabis is extremely clear on his task ahead: bring the latest AI technologies to every corner of the Google universe to serve its billions of users.
“We’re like the engine room of the company,” Hassabis told CNBC, speaking about his newly integrated AI unit within Google.
Last month, Alphabet CEO Sundar Pichai merged Hassabis’ DeepMind with Google Brain, a separate AI team, and selected Hassabis to lead the group. It’s now up to Hassabis to reestablish Google as the leader in generative AI after the company was caught off-guard by the rapid emergence of OpenAI, which is backed by Microsoft.
DeepMind CEO Demis Hassabis at a 2017 event in China.
Source: Alphabet
There may be no more important task at Google, especially as new generative AI services give consumers alternative and more creatives ways to search for information online. The business question is — can a longtime researcher like Hassabis be the person to ship products that consumers love?
Geoffrey Hinton, known as the “Godfather of AI,” says there’s no questioning Hassabis’ will to win.
“I don’t think I’ve ever met anybody more competitive,” said Hinton, who advised Google to buy DeepMind about a decade ago. “Demis is competitive at the level of people who get gold medals in the Olympics.”
He formed that trait at any early age. Hassabis was a child chess prodigy who at one point was the No. 2 rated player in the world. He also competed in the World Series of Poker.
Hassabis says he has consumer experience on his side, too. At just 17 years old, he shipped a hit video game in the 1990s called “Theme Park.” Games at that time had to be fun and easy to navigate in order to succeed, Hassabis said. After Theme Park, he created his own video game company, Elixir Studios.
Hassabis would later go on to co-found DeepMind, which became widely recognized as the world’s leading AI research lab, attracting some of the most prominent experts in deep learning. When Google acquired the lab for a reported $500 million in 2014, DeepMind was given a long leash to operate independently.
Falling behind
Under Hassabis, DeepMind was known for developing its technology through games like Breakout and AlphaGo, an AI program that beat the world’s top Go player.
There was a practical reason for focusing on games. Hassabis told CNBC that “simulations are totally safe, have no consequences, but they can still learn from it.”
During his career at DeepMind and then at Google, Hassabis dominated the field of AI.
Even Tesla CEO Elon Musk would tell OpenAI co-founders in 2018 that they would need billions of dollars to have a chance of competing with Hassabis and Google.
Google, however, would lose that edge as rivals like OpenAI and Microsoft brought headline-making products like ChatGPT and Copilot to market.
A person who has worked with Hassabis but wanted to remain anonymous said that, for a period of time, Hassabis may have been more interested in winning academic accolades than launching products people could use. Nature magazine, one of the most influential scientific journals in the world, has featured Hassabis’ work many times over the past decade.
“Accolades were never the end goal,” DeepMind said in a statement to CNBC. “They simply reflect the importance and impact of the research they recognized.”
One of DeepMind’s most important products, AlphaFold, was a groundbreaking piece of technology that used AI to help scientists predict the structure of proteins, a massive challenges in biology for decades.
DeepMind open sourced AlphaFold, essentially giving it away for free.
In 2017, a team of Google researchers, separate from DeepMind, published a breakthrough study on Transformers, a way for AI models to better process the texts used for training.
Microsoft CEO Satya Nadella (R) speaks as OpenAI CEO Sam Altman (L) looks on during the OpenAI DevDay event in San Francisco on Nov. 6, 2023.
Justin Sullivan | Getty Images
That jumpstarted the wave of AI innovation that followed, notably at OpenAI. Transformers is the “T” in ChatGPT.
Critics have argued that Google was giving away key products and research, and helping its biggest competitors.
“They had the lead and they’ve been very cautious,” Hinton said. “They’ve been very cautious both about generative AI images, and about the large language models. And when OpenAI teamed up with Microsoft and ChatGPT was being used by Microsoft, Google couldn’t afford to be cautious anymore.”
Hassabis and Google went on offense.
The Washington Post reported in May 2023 that Google was internally announcing a big departure from previous policy. Employees had to stop sharing their research with the world, only publishing papers after the research had been turned into products.
AlphaFold became a huge business opportunity, securing commercial partners like Eli Lilly and Novartis for drug discovery.
During a TED talk, Hassabis said the ChatGPT moment demonstrated that the public found value in LLMs and was ready to embrace them.
“When we’re working on these systems, mostly you’re focusing on the flaws and the things they don’t do and hallucinations,” he said. “We wanted to improve those things first before putting them out. But interestingly, it turned out that even with those flaws, many tens of millions of people still find them very useful.”
Hassabis said that it was time to bring these products “beyond the rarefied world of science.”
Now investors are waiting to see if Google can accomplish what they view as the most important feat, and turn that bleeding-edge science into profits.
South Korea’s data protection authority has concluded that Chinese artificial intelligence startup DeepSeek collected personal information from local users and transferred it overseas without their permission.
The authority, the Personal Information Protection Commission, released its written findings on Thursday in connection with a privacy and security review of DeepSeek.
It follows DeepSeek’s removal of its chatbot application from South Korean app stores in February at the recommendation of PICP. The agency said DeepSeek had committed to cooperate on its concerns.
During DeepSeek’s presence in South Korea, it transferred user data to several firms in China and the U.S. without obtaining the necessary consent from users or disclosing the practice, the PIPC said.
The agency highlighted a particular case in which DeepSeek transferred information from user-written AI prompts, as well as device, network, and app information, to a Chinese cloud service platform named Beijing Volcano Engine Technology Co.
While the PIPC identified Beijing Volcano Engine Technology Co. as “an affiliate” of TikTok-owner ByteDance, the information privacy watchdog noted in a statement that the cloud platform “is a separate legal entity and has no relation to ByteDance,” according to a Google translation.
According to PIPC, DeepSeek said it used Beijing Volcano Engine Technology’s services to improve the security and user experience of its app, but later blocked the transfer of AI prompt information from April 10.
DeepSeek and ByteDance did not immediately respond to inquiries from CNBC.
The Hangzhou-based AI startup took the world by storm in January when it unveiled its R1 reasoning model, rivaling the performance of Western competitors despite the company’s claims that it was trained for relatively low costs and with less advanced hardware.
However, the app’s rising popularity quickly triggered national security and data concerns outside China due to Beijing’s requirement for domestic firms to share data with the PRC. Cybersecurity experts have also flagged data vulnerabilities in the app and voiced concerns about the company’s privacy policy.
PIPC on Thursday said it had issued a corrective recommendation to DeepSeek, which includes requests to immediately destroy AI prompt information transferred to the Chinese company in question and to set up legal protocols for transferring personal information overseas.
When the data protection authority announced the removal of DeepSeek from local app stores, it signaled that the app would become available again once the company implemented the necessary updates to comply with local data protection policy.
That investigation followed reports that some South Korean government agencies hadbanned employees from using DeepSeek on work devices. Other global government departments, including in Taiwan, Australia, and the U.S., have reportedly instituted similar bans.
Adobe’s new artificial intelligence image models, Firefly Image Model 4 and Firefly Image Model 4 Ultra, can generate hyper-realistic pictures in response to user prompts.
Adobe
LONDON — Adobe plans to launch a mobile version of its artificial intelligence image generation tool Firefly, stepping up a challenge to OpenAI as the Microsoft-backed startup advances its efforts on visual applications for the technology.
The design software giant said Thursday at its MAX creativity conference in London that it will release Firefly on both iOS and Android “soon,” without giving a specific date.
“Creative people think on the go,” Alexandru Costin, vice president of Adobe Firefly, told CNBC in an interview. “One of the visions we have is for the Firefly mobile application to become a creative partner that sits with you all the time.”
Costin said that one way creatives could use its upcoming mobile app was to ask it to sketch up some ideas about an ad campaign while commuting to the office, so that by the time they arrive at work they’ve got a mood board to help them develop their thinking.
Adobe also announced the launch of its latest AI models, Firefly Image Model 4 and Firefly Image Model 4 Ultra, and said its new Firefly Video Model for video generation is now generally available.
The company said the new systems are capable of generating hyper-realistic pictures and videos in response to textual prompts in a “commercially safe” way, blocking the inclusion of any intellectual property.
Competition from OpenAI
It marks Adobe’s latest push to incorporate AI into its creative tool suite and comes as the company is increasingly facing competition from well-funded AI firms such as OpenAI and Runway.
Last month, OpenAI released a native image generation feature that went viral online for its ability to produce anime images in the style of animation studio Studio Ghibli and recreate people as toy dolls.
The tool saw such huge levels of demand that OpenAI boss Sam Altman warned it was melting the company’s GPUs (graphics processing units). “It’s super fun seeing people love images in ChatGPT. But our GPUs are melting,” Altman said on March 27.
While Adobe’s Costin conceded that the competitive environment is heating up, he said the company isn’t shying away from partnering with the competition. For example, Adobe has partnered up with the likes of OpenAI, Google and Runway to add their AI image generation tools to Firefly.
“Competition is great,” Costin told CNBC. “We think there will be models with different personalities and capabilities.”
Revolut CEO Nikolay Storonsky at the Web Summit in Lisbon, Portugal, Nov. 7, 2019.
Pedro Nunes | Reuters
LONDON — British fintech firm Revolut on Thursday announced it topped $1 billion in annual profit for the first time, a major milestone for the company as it readies the launch of its U.K. bank later this year.
Revolut, which offers a range of banking and financial services via an app, said that net profit for the year ending Dec. 31, 2024, totaled £1.1 billion ($1.5 billion), up 149% year over year. Revenues at the company increased 72% year on year to £3.1 billion, driven by growth across different revenue streams.
Revolut’s wealth unit — which includes its stock-trading business — saw outsized growth, with revenue surging 298% to £506 million, while subscriptions turnover jumped 74% to £423 million.
Revolut also saw significant growth in its loan book, which grew 86% to £979 million. Coupled with a jump in customer deposits, this contributed to a 58% increase in interest income, which totaled £790 million.
UK bank rollout
Revolut’s financial milestone arrives at a critical time for the almost decade-old-firm. The digital banking unicorn has been preparing a transition to becoming a fully operational bank in the U.K. after securing a banking license last summer.
It was granted a banking license with restrictions in July 2024 from the U.K.’s Prudential Regulation Authority, bringing an end to a lengthy application process that began back in 2021.
The restricted license means that Revolut is now in the “mobilization” stage, where it is focusing on building out its banking operations and infrastructure in the run-up to a full launch. The period typically lasts about 12 months.
Revolut is still awaiting approval from regulators to transfer all 11 million of its U.K. users to a new banking entity this summer. Once fully up and running, the firm will be able to begin offering loans, overdrafts and mortgages, opening up the path to new income streams.
‘Customers trust banks’
Victor Stinga, Revolut’s chief financial officer, told CNBC on Thursday that the company’s aim is to formally launch its U.K. bank later this year.
“As you can imagine, at this scale, it’s a thorough process, and we just pay a lot of attention to it,” Stinga said. “We work very closely on a close contact with the PRA [Prudential Regulation Authority] and the FCA [Financial Conduct Authority] on it. We feel like we’re making great progress on it.”
Stinga said that a big advantage of becoming a bank in the U.K. is ability to start accepting deposits protected by government guarantees. Licensed banks are covered by the Financial Services Compensation Scheme, which means their customers can claim up to £85,000 if a lender goes out of business.
“Customers trust banks, so it means customers on this transition will use Revolut as a primary bank account,” Stinga said.
Lending is arguably “the biggest roadmap item that this unlocks,” Revolut’s CFO said, adding that the firm is looking at launching credit cards and personal loans, similar to the products it already offers in the European Union under a separate EU banking license.
Francesca Carlesi, Revolut’s U.K. boss, previously told the Wall Street Journal that Revolut views its journey to becoming a U.K. bank as a crucial step in its global expansion and eventual IPO. “My main strategic focus is making Revolut the primary bank for everybody in the U.K.,” she told the WSJ.
It has a steep hill to climb — rivals Monzo and Starling have had a lengthy head start on Revolut. Monzo obtained its full banking license in 2017, while Starling was granted its own permit in 2016.