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.
Oracle’s Federal Electronic Health Record experienced a nation-wide outage on Tuesday, the Department of Veterans Affairs confirmed to CNBC.
The agency said “all users” of the company’s Federal EHR, including the VA, the Department of Defense, the U.S. Coast Guard and the National Oceanic and Atmospheric Administration, were impacted. Six VA medical centers, 26 community clinics, and remote VA sites experienced disruptions, the agency said.
“Affected VA medical facilities followed standard contingency procedures during the outage to ensure continuity of care for Veterans,” a VA spokesperson said in a statement Thursday.
An electronic health record, or an EHR, is a digital version of a patient’s medical history that’s updated by doctors and nurses. It’s crucial software within the U.S. health-care system, and outages can cause serious disruptions to patient care.
Oracle is one of the largest EHR vendors thanks to it’s $28 billion acquisition of the medical records giant Cerner in 2022.
The company’s Federal EHR initially started experiencing issues at around 8:37 a.m. Eastern on Tuesday, the VA said. Users reported that the software froze and they were unable to access applications. Access was restored and cleared by 2:05 p.m. Eastern that day after Oracle restarted the system.
Oracle is carrying out an investigation to determine what caused the outage, the VA said. Oracle did not immediately respond to CNBC’s request for comment.
The outage marks Oracle’s latest stumble in a thorny, years-long EHR rollout with the VA, which has been marred by patient safety concerns. The agency launched a strategic review of Cerner in 2021, before Oracle’s acquisition, and it temporarily paused deployment of the software in 2023.
Four VA facilities in Michigan are slated to deploy Oracle’s Federal EHR in 2026.
In October, Oracle unveiled a brand-new EHR equipped with fresh cloud and artificial intelligence capabilities. The early adopter program for the software begins this year, though it’s not clear if the VA has plans to utilize it.
Oracle is slated to report third-quarter fiscal 2025 earnings on Monday.
Broadcom reported first-quarter earnings on Thursday that topped analysts’ expectations, and the chipmaker offered strong guidance for the current quarter. The stock jumped 16% in extended trading.
Here’s how the company did versus LSEG consensus estimates:
Earnings per share: $1.60 adjusted vs. $1.49 expected
Revenue: $14.92 billion vs. $14.61 billion expected
Broadcom said it expects about $14.9 billion in second-quarter revenue, higher than the $14.76 billion forecast by Wall Street analysts. Revenue in the last quarter rose 25% from $11.96 billion a year earlier.
The company said net income increased to $5.5 billion, or $1.14 per share, from $1.33 billion, or 28 cents per share, in the same period last year.
Broadcom’s artificial intelligence business is at the center of the company’s recent boom, which saw its stock price more than double last year. The company is one of the primary data center infrastructure vendors for AI, working both on Google’s custom AI chips as well as providing essential components for networking thousands of other chips together to develop advanced AI software.
Prior to the after-hours pop, the stock was down about 23% so far in 2025, as investors rotate out of risk partly due to concern about President Donald Trump’s tariffs.
Broadcom said it recorded $4.1 billion in AI revenue during the first quarter, which is 77% higher on a year-over-year basis. Those sales are reported as part of Broadcom’s semiconductor solutions business, which grew 11% on an annual basis to $8.21 billion during the quarter.
Broadcom CEO Hock Tan said in a statement that the company expects “continued strength in AI semiconductor revenue,” reaching a projected $4.4 billion in the second quarter.
In December, Broadcom said it was developing custom AI chips with three large cloud customers. Tan said on Thursday that in addition to those customers, it had “deeply engaged” with two other hyperscalers, and are working with four other potential customers to develop their own custom AI chips.
Tan said that Broadcom closely chooses partners for developing custom AI chips who can deploy the resulting product in large quantities. “To put it bluntly, we don’t do it for startups,” Tan said.
The other major part of Broadcom’s revenue comes from its infrastructure software division, which includes software from the company’s acquisition of VMware in the fourth fiscal quarter of 2023. Broadcom said it saw $6.7 billion in software sales during the quarter, a 47% increase on an annual basis.
Antonio Neri, CEO of Hewlett Packard Enterprise, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, October 20, 2023.
Brendan McDermid | Reuters
Hewlett Packard Enterprise shares slid 19% in extended trading on Thursday as the data center equipment maker issued quarterly and full-year guidance that came in below consensus.
Here’s how the company did in the fiscal first quarter in comparison with LSEG consensus:
Earnings per share: 49 cents adjusted vs. 49 cents expected
Revenue: $7.85 billion vs. $7.82 billion expected
HPE’s revenue rose 16% year over year in the quarter ending on Jan. 31, according to a statement. The company was left with profit of $598 million, or 44 cents per share, up from $387 million, or 29 cents per share, in the same quarter a year earlier. The adjusted earnings per share excludes stock-based compensation.
“We could have executed better,” CEO Antonio Neri said on a conference call with analysts. The company had higher than normal inventory for artificial intelligence servers because of a shift to next-generation Blackwell graphics processing units from Nvidia.
The backlog for AI systems rose 29% quarter over quarter to $3.1 billion. Total server revenue totaled $4.29 billion.
HPE dealt with extensive discounting in the market while selling traditional servers during the quarter, finance chief Marie Myers said. As the quarter progressed, HPE moved to limit travel and discretionary spending, she said.
“We expect pricing adjustments may negatively impact top-line growth in the near term,” Myers said.
The company said it would implement a cost-cutting program involving layoffs over the next 18 months that will lead to $350 million in gross savings by the 2027 fiscal year. Around 2,500 employees will be affected, a spokesperson said, representing about 5% of the workforce when also factoring in expected attrition. At the end of October, HPE employed 61,000 people, according to its most recent annual report.
In January, the U.S. Justice Department filed in a federal district court to stop HPE from acquiring Juniper Networks. HPE announced the proposed $14 billion deal in January 2024. The court expects a trial to begin in July, according to the statement. The deal should close by October 2025, HPE said. In December, the company had said the transaction would be done in early 2025.
HPE called for 28 cents to 34 cents in adjusted earnings per share for the fiscal second quarter, with revenue coming in between $7.2 billion and $7.6 billion. Analysts surveyed by LSEG had looked for 50 cents per share on $7.93 billion in revenue.
For the 2025 fiscal year, HPE sees $1.70 to $1.90 in adjusted earnings per share. Analysts polled by LSEG had predicted $2.13 per share.
HPE expects to update its prices to reflect higher expenses from U.S. tariffs, Neri said, adding that he has not perceived any business deterioration from President Donald Trump’s so-called Department of Government Efficiency.
As of Thursday’s close, HPE shares were up about 2% so far in 2025, while the S&P 500 index was down 2%.