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It’s been less than two weeks since Google debuted “AI Overview” in Google Search, and public criticism has mounted after queries have returned nonsensical or inaccurate results within the AI feature — without any way to opt out.

AI Overview shows a quick summary of answers to search questions at the very top 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 multistep cleaning process, gleaned from information it synthesized from around the web.

But social media users have shared a wide range of screenshots showing the AI tool giving incorrect and controversial responses.

Google, Microsoft, OpenAI and other companies are at the helm of a generative AI arms race as companies in seemingly every industry rush to add AI-powered chatbots and agents to avoid being left behind by competitors. The market is predicted to top $1 trillion in revenue within a decade.

Here are some examples of errors produced by AI Overview, according to screenshots shared by users.

When asked how many Muslim presidents the U.S. has had, AI Overview responded, “The United States has had one Muslim president, Barack Hussein Obama.”

When a user searched for “cheese not sticking to pizza,” the feature suggested adding “about 1/8 cup of nontoxic glue to the sauce.” Social media users found an 11-year-old Reddit comment that seemed to be the source.

Attribution can also be a problem for AI Overview, especially in attributing inaccurate information to medical professionals or scientists.

For instance, when asked, “How long can I stare at the sun for best health,” the tool said, “According to WebMD, scientists say that staring at the sun for 5-15 minutes, or up to 30 minutes if you have darker skin, is generally safe and provides the most health benefits.”

When asked, “How many rocks should I eat each day,” the tool said, “According to UC Berkeley geologists, people should eat at least one small rock a day,” going on to list the vitamins and digestive benefits.

The tool also can respond inaccurately to simple queries, such as making up a list of fruits that end with “um,” or saying the year 1919 was 20 years ago.

When asked whether or not Google Search violates antitrust law, AI Overview said, “Yes, the U.S. Justice Department and 11 states are suing Google for antitrust violations.”

The day Google rolled out AI Overview at its annual Google I/O event, the company said it also 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 they’d get a starting point with a wide range of recipes from across the web.

“The vast majority of AI Overviews provide high quality information, with links to dig deeper on the web,” a Google spokesperson told CNBC in a statement. “Many of the examples we’ve seen have been uncommon queries, and we’ve also seen examples that were doctored or that we couldn’t reproduce.”

The spokesperson said AI Overview underwent extensive testing before launch and that the company is taking “swift action where appropriate under our content policies.”

The news follows Google’s high-profile rollout of Gemini’s image-generation tool in February, and a pause that same month after comparable issues.

The tool allowed users to enter prompts to create an image, but almost immediately, users discovered historical inaccuracies and questionable responses, which circulated widely on social media.

For instance, when one user asked Gemini to show a German soldier in 1943, the tool depicted a racially diverse set of soldiers wearing German military uniforms of the era, according to screenshots on social media platform X.

When asked for a “historically accurate depiction of a medieval British king,” the model generated another racially diverse set of images, including one of a woman ruler, screenshots showed. Users reported similar outcomes when they asked for images of the U.S. founding fathers, an 18th-century king of France, a German couple in the 1800s and more. The model showed an image of Asian men in response to a query about Google’s own founders, users reported.

Google said in a statement at the time that it was working to fix Gemini’s image-generation issues, acknowledging that the tool was “missing the mark.” Soon after, the company announced it would immediately “pause the image generation of people” and “re-release an improved version soon.”

In February, Google DeepMind CEO Demis Hassabis said Google planned to relaunch its image-generation AI tool in the next “few weeks,” but it has not yet rolled out again.

The problems with Gemini’s image-generation outputs reignited a debate within the AI industry, with some groups calling Gemini too “woke,” or left-leaning, and others saying that the company didn’t sufficiently invest in the right forms of AI ethics. Google came under fire in 2020 and 2021 for ousting the co-leads of its AI ethics group after they published a research paper critical of certain risks of such AI models and then later reorganizing the group’s structure.

In 2023, Sundar Pichai, CEO of Google’s parent company, Alphabet, was criticized by some employees for the company’s botched and “rushed” rollout of Bard, which followed the viral spread of ChatGPT.

Correction: This article has been updated to reflect the correct name of Google’s AI Overview. Also, an earlier version of this article included a link to a screenshot that Google later confirmed was doctored.

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U.S. lifts chip software curbs on China amid trade truce, Synopsys says

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U.S. lifts chip software curbs on China amid trade truce, Synopsys says

Synopsys logo is seen displayed on a smartphone with the flag of China in the background.

Sopa Images | Lightrocket | Getty Images

The U.S. government has rescinded its export restrictions on chip design software to China, U.S.-based Synopsys announced Thursday. 

“Synopsys is working to restore access to the recently restricted products in China,” it said in a statement

The U.S. had reportedly told several chip design software companies, including Synopsys, in May that they were required to obtain licenses before exporting goods, such as software and chemicals for semiconductors, to China. 

The U.S. Commerce Department did not immediately respond to a request for comment from CNBC.

The news comes after China signaled last week that they are making progress on a trade truce with the U.S. and confirmed conditional agreements to resume some exchanges of rare earths and advanced technology.

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Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index

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Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index

The Datadog stand is being displayed on day one of the AWS Summit Seoul 2024 at the COEX Convention and Exhibition Center in Seoul, South Korea, on May 16, 2024.

Chris Jung | Nurphoto | Getty Images

Datadog shares were up 10% in extended trading on Wednesday after S&P Global said the monitoring software provider will replace Juniper Networks in the S&P 500 U.S. stock index.

S&P Global is making the change effective before the beginning of trading on July 9, according to a statement.

Computer server maker Hewlett Packard Enterprise, also a constituent of the index, said earlier on Wednesday that it had completed its acquisition of Juniper, which makes data center networking hardware. HPE disclosed in a filing that it paid $13.4 billion to Juniper shareholders.

Over the weekend, the two companies reached a settlement with the U.S. Justice Department, which had sued in opposition to the deal. As part of the settlement, HPE agreed to divest its global Instant On campus and branch business.

While tech already makes up an outsized portion of the S&P 500, the index has has been continuously lifting its exposure as the industry expands into more areas of society.

DoorDash was the latest tech company to join during the last rebalancing in March. Cloud software vendor Workday was added in December, and that was preceded earlier in 2024 with the additions of Palantir, Dell, CrowdStrike, GoDaddy and Super Micro Computer.

Stocks often rally when they’re added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.

New York-based Datadog went public in 2019. The company generated $24.6 million in net income on $761.6 million in revenue in the first quarter of 2025, according to a statement. Competitors include Cisco, which bought Splunk last year, as well as Elastic and cloud infrastructure providers such as Amazon and Microsoft.

Datadog has underperformed the broader tech sector so far this year. The stock was down 5.5% as of Wednesday’s close, while the Nasdaq was up 5.6%. Still, with a market cap of $46.6 billion, Datadog’s valuation is significantly higher than the median for that index.

— CNBC’s Ari Levy contributed to this report.

CNBC: Datadog CEO Olivier Pomel on the cloud computing outlook

Datadog CEO Olivier Pomel on the cloud computing outlook

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Ether and related stocks gain amid the latest crypto craze: Tokenization

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Ether and related stocks gain amid the latest crypto craze: Tokenization

A representation of cryptocurrency Ethereum is placed on a PC motherboard in this illustration taken on June 16, 2023.

Dado Ruvic | Reuters

Stocks tied to the price of ether, better known as ETH, were higher on Wednesday, reflecting renewed enthusiasm for the crypto asset amid a surge of interest in stablecoins and tokenization.

BitMine Immersion Technologies, a bitcoin miner that announced plans this week to make ETH its primary treasury reserve asset, jumped about 20%. It’s gained more than 1,000% since the announcement. Betting platform SharpLink Gaming, which has also initiated an ETH treasury strategy, added more than 11%. Bit Digital, which last week exited bitcoin mining to focus on its ETH treasury and staking plans, jumped more than 6%.

“We’re finally at the point where real use cases are emerging, and stablecoins have been the first version of that at scale but they’re going to open the door to a much bigger story around tokenizing other assets and using digital assets in new ways,” Devin Ryan, head of financial technology research at Citizens.

On Tuesday, as bitcoin ETFs snapped a 15-day streak of inflows, ether ETFs saw $40 million in inflows led by BlackRock’s iShares Ethereum Trust. ETH ETFs came back to life in June after much concern that they were becoming zombie funds.

The price of the coin itself was last higher by 5%, according to Coin Metrics, though it’s still down 24% this year.

Ethereum has been struggling with an identity crisis fueled by uncertainty about the network’s value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility, driven by geopolitical uncertainty this year, has not helped.

The Ethereum network’s smart contracts capability makes it a prominent platform for the tokenization of traditional assets, which includes U.S. dollar-pegged stablecoins. Fundstrat’s Tom Lee this week called Ethereum “the backbone and architecture” of stablecoins. Both Tether (USDT) and Circle‘s USD Coin (USDC) are issued on the network.

Fundstrat's Tom Lee on being named chairman of BitMine Immersion Technologies

BlackRock’s tokenized money market fund (known as BUIDL, which stands for USD Institutional Digital Liquidity Fund) also launched on Ethereum last year before expanding to other blockchain networks.

Tokenization is the process of issuing digital representations on a blockchain network of publicly traded securities, real world assets or any other form of value. Holders of tokenized assets don’t have outright ownership of the assets themselves.

The latest wave of interest in ETH-related assets follows an announcement by Robinhood this week that it will enable trading of tokenized U.S. stocks and ETFs across Europe, after a groundswell of interest in stablecoins throughout June following Circle’s IPO and the Senate passage of its proposed stablecoin bill, the GENIUS Act.

Ether, which turns 10 years old at the end of July, is sitting about 75% off its all-time high.

Don’t miss these cryptocurrency insights from CNBC Pro:

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