Google CEO Sundar Pichai speaks at the Google I/O developer conference.
Andrej Sokolow | Picture Alliance | Getty Images
Google on Tuesday hosted its annual I/O developer conference, and rolled out a range of artificial intelligence products, from new search and chat features to AI hardware for cloud customers. The announcements underscore the company’s focus on AI as it fends off competitors, such as OpenAI.
Many of the features or tools Google unveiled are only in a testing phase or limited to developers, but they give an idea of how the tech giant is thinking about AI and where it’s investing. Google makes money from AI by charging developers who use its models and from customers who pay for Gemini Advanced, its competitor to ChatGPT, which costs $19.99 per month and can help users summarize PDFs, Google Docs and more.
Tuesday’s announcements follow similar events held by its AI competitors. Earlier this month, Amazon-backed Anthropic announced its first-ever enterprise offering and a free iPhone app. Meanwhile, OpenAIon Monday launched a new AI model and desktop version of ChatGPT, along with a new user interface.
Here’s what Google announced.
Gemini AI updates
Google introduced updates to Gemini 1.5 Pro, its AI model that will soon be able to handle even more data — for example, the tool can summarize 1,500 pages of text uploaded by a user.
There’s also a new Gemini 1.5 Flash AI model, which the company said is more cost-effective and designed for smaller tasks like quickly summarizing conversations, captioning images and videos and pulling data from large documents.
Google CEO Sundar Pichai highlighted improvements to Gemini’s translations, adding that it will be available to all developers worldwide in 35 languages. Within Gmail, Gemini 1.5 Pro will analyze attached PDFs and videos, giving summaries and more, Pichai said. That means that if you missed a long email thread on vacation, Gemini will be able to summarize it along with any attachments.
The new Gemini updates are also helpful for searching Gmail. One example the company gave: If you’ve been comparing prices from different contractors to fix your roof and are looking for a summary to help you decide who to pick, Gemini could return three quotes along with the anticipated start dates offered in the different email threads.
Google said Gemini will eventually replace Google Assistant on Android phones, suggesting it’s going to be a more powerful competitor to Apple’s Siri on iPhone.
Google Veo, Imagen 3 and Audio Overviews
Google announced “Veo,” its latest model for generating high-definition video, and Imagen 3, its highest quality text-to-image model, which promises lifelike images and “fewer distracting visual artifacts than our prior models.”
The tools will be available for select creators on Monday and will come to Vertex AI, Google’s machine learning platform that lets developers train and deploy AI applications.
The company also showcased “Audio Overviews,” the ability to generate audio discussions based on text input. For instance, if a user uploads a lesson plan, the chatbot can speak a summary of it. Or, if you ask for an example of a science problem in real life, it can do so through interactive audio.
Separately, the company also showcased “AI Sandbox,” a range of generative AI tools for creating music and sounds from scratch, based on user prompts.
Generative AI tools such as chatbots and image creators continue to have issues with accuracy, however.
Google search boss Prabhakar Raghavan told employees last month that competitors “may have a new gizmo out there that people like to play with, but they still come to Google to verify what they see there because it is the trusted source, and it becomes more critical in this era of generative AI.”
Earlier this year, Google introduced the Gemini-powered image generator. Users discovered historical inaccuracies that went viral online, and the company pulled the feature, saying it would relaunch it in the coming weeks. The feature has still not been re-released.
New search features
The tech giant is launching “AI Overviews” in Google Search on Monday in the U.S. AI Overviews show a quick summary of answers to the most complex search questions, according to Liz Reid, head of Google Search. For example, if a user searches for the best way to clean leather boots, the results page may display an “AI Overview” at the top with a multi-step cleaning process, gleaned from information it synthesized from around the web.
The company said it plans to introduce assistant-like planning capabilities directly within search. It explained that users will be able to search for something like, “‘Create a 3-day meal plan for a group that’s easy to prepare,'” and you’ll get a starting point with a wide range of recipes from across the web.
As far as its progress to offer “multimodality,” or integrating more images and video within generative AI tools, Google said it will begin testing the ability for users to ask questions through video, such as filming a problem with a product they own, uploading it and asking the search engine to figure out the problem. In one example, Google showed someone filming a broken record player while asking why it wasn’t working. Google Search found the model of the record player and suggested that it could be malfunctioning because it wasn’t properly balanced.
Another new feature being tested is called “AI Teammate,” which will integrate into a user’s Google Workspace. It can build a searchable collection of work from messages and email threads with more PDFs and documents. For instance, a founder-to-be could ask the AI Teammate, “Are we ready for launch?” and the assistant will provide an analysis and summary based on the information it can access in Gmail, Google Docs and other Workspace apps.
Project Astra
Project Astra is Google’s latest advancement toward its AI assistant that’s being built by Google’s DeepMind AI unit. It’s just a prototype for now, but you can think of it as Google’s aim to develop its own version of J.A.R.V.I.S., Tony Stark’s all-knowing AI assistant from the Marvel Universe.
In the demo video presented at Google I/O, the assistant — through video and audio, rather than a chatbot interface — was able to help the user remember where they left their glasses, review code and answer questions about what a certain part of a speaker is called, when that speaker was shown on video.
Google said a truly useful chatbot needs to let users “talk to it naturally and without lag or delay.” The conversation in the demo video happened in real time, without lags. The demo followed OpenAI’s Monday showcase of a similar audio back-and-forth conversation with ChatGPT.
DeepMind CEO Demis Hassabis said onstage that “getting response time down to something conversational is a difficult engineering challenge.”
Pichai said he expects Project Astra to launch in Gemini later this year.
AI hardware
Google also announced Trillium, its sixth-generation TPU, or tensor processing unit — a piece of hardware integral to running complex AI operations — which is to be available to cloud customers in late 2024.
The TPUs aren’t meant to compete with other chips, like Nvidia’s graphics processing units. Pichai noted during I/O, for example, that Google Cloud will begin offering Nvidia’s Blackwell GPUs in early 2025.
Nvidia said in March that Google will be using the Blackwell platform for “various internal deployments and will be one of the first cloud providers to offer Blackwell-powered instances,” and that access to Nvidia’s systems will help Google offer large-scale tools for enterprise developers building large language models.
In his speech, Pichai highlighted Google’s “longstanding partnership with Nvidia.” The companies have been working together for more than a decade, and Pichai has said in the past that he expects them to still be doing so a decade from now.
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)
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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.