Google CEO Pichai tells employees to gear up for big 2025: ‘The stakes are high’
Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum (WEF) annual meeting in Davos, on January 22, 2020.
Fabrice COFFRINI | AFP | Getty Images
Google CEO Sundar Pichai told employees last week that “the stakes are high” for 2025, as the company faces increased competition and regulatory hurdles and contends with rapid advancements in artificial intelligence.
At a 2025 strategy meeting on Dec. 18, Pichai and other Google leaders, donning ugly holiday sweaters, hyped up the coming year, most notably as it pertains to what’s coming in AI, according to audio obtained by CNBC.
“I think 2025 will be critical,” Pichai said. “I think it’s really important we internalize the urgency of this moment, and need to move faster as a company. The stakes are high. These are disruptive moments. In 2025, we need to be relentlessly focused on unlocking the benefits of this technology and solve real user problems.”
Some employees attended the meeting in person at Google’s headquarters in Mountain View, California, and others tuned in virtually.
Pichai’s comments come after a year packed with some of the most intense pressure Google has experienced since going public two decades ago. While areas like search ads and cloud produced strong revenue growth, competition picked up in Google’s core markets, and the company faced internal challenges including culture clashes and concerns about Pichai’s vision for the future.
Additionally, regulation is now heavier than ever.
In August, a federal judge ruled that Google illegally holds a monopoly in the search market. The Justice Department in November asked that Google be forced to divest its Chrome internet browser unit. In a separate case, the DOJ accused the company of illegally dominating online ad technology. That trial closed in September and awaits a judge ruling.
That same month, Britain’s competition watchdog issued a statement of objections over Google’s ad tech practices, which the regulator provisionally found are impacting competition in the U.K.
“It’s not lost on me that we are facing scrutiny across the world,” Pichai said. “It comes with our size and success. It’s part of a broader trend where tech is now impacting society at scale. So more than ever, through this moment, we have to make sure we don’t get distracted.”
A Google spokesperson declined to comment.
Google’s search business still has dominant market share, but generative AI has served up all sorts of new ways for people to access online information, and has brought with it a host of new competitors.
OpenAI’s ChatGPT kicked off the hype cycle in late 2022, and investors including Microsoft have since propelled the company to a $157 billion valuation. In July, OpenAI announced it would launch a search engine of its own. Perplexity is also promoting its AI-powered search service and recently closed a $500 million funding round at a $9 billion valuation.
Google is investing heavily to try and stay on top, principally through Gemini, its AI model. The Gemini app gives users access to a number of tools, including Google’s chatbot.
Pichai said “building big, new business” is a top priority. That includes the Gemini app, which executives said they see as Google’s next app to reach half a billion users. The company currently has 15 apps that have hit that mark.
“With the Gemini app, there is strong momentum, particularly over the last few months,” Pichai said. “But we have some work to do in 2025 to close the gap and establish a leadership position there as well.”
“Scaling Gemini on the consumer side will be our biggest focus next year,” Pichai later added.
‘Don’t always have to be first’
At the meeting, Pichai showed a chart of large language models, with Gemini 1.5 leading OpenAI’s GPT and other competitors.
“I expect some back and forth” in 2025, Pichai said. “I think we’ll be state of the art.”
He acknowledged that Google has had to play catchup.
“In history, you don’t always need to be first but you have to execute well and really be the best in class as a product,” he said. “I think that’s what 2025 is all about.”
Executives took questions that were submitted by employees through Google’s internal system. One comment read aloud by Pichai suggested that ChatGPT “is becoming synonymous to AI the same way Google is to search,” with the questioner asking, “What’s our plan to combat this in the upcoming year? Or are we not focusing as much on consumer facing LLM?”
For the answer, Pichai turned to DeepMind co-founder Demis Hassabis, who said that teams are going to “turbo charge” the Gemini app and that the company has seen progress in the number of users since launching the app in February. He said “the products themselves are going to evolve massively over the next year or two.”
Hassabis described a vision for a universal assistant that “can seamlessly operate over any domain, any modality or any device.”
Project Astra, Google’s experimental version of a universal assistant that the company announced in May, will be updated in the first half of the year.
Another employee question asked whether Google will be able to get AI products to scale without charging $200 a month “like other companies.”
“Right now, we don’t have any plans for this kind of subscription level,” Hassabis responded, adding that he thinks the $20 monthly charge for Gemini advanced is a good value. “I wouldn’t necessarily say never but there are no plans for that at the moment.”
Toward the end of the meeting, Google welcomed to the stage Josh Woodward, the head of Google Labs. He took the microphone as the Zombie Nation song “Kernkraft 400” played loudly in the background.
“I’m going to try to do six demos in eight minutes,” said Woodward, who’s known for his high level of energy.
Woodward started by showing off Jules, a coding assistant that’s in a trusted tester’s program. He said, “It’s where the future of software development is headed.”
Woodward then shifted to AI notetaking product NotebookLM, which featured a series of updates in 2024, including a podcasting tool. Woodward demonstrated how the company is trying a new feature that allows the user to “call in” to a podcast.
He then moved onto Project Mariner, an AI-powered multi-tasking Chrome extension. Woodward asked it to add the top restaurants from Tripadvisor to the Maps app. After a brief pause, the demo successfully worked, leading employees in attendance to erupt in applause.
Throughout the meeting, Pichai kept reminding employees of the need to “stay scrappy.” Google has gone through an extensive phase of cost cutting that included eliminating about 6% of its workforce in 2023 and a continued focus on efficiency.
As of the end of the third quarter, Alphabet had 181,269 employees, down about 5% from the end of 2022.
At one point, Pichai referenced Google founders Larry Page and Sergey Brin, who started the company 26 years ago, long before cloud computing or AI tools existed.
“In early Google days, you look at how the founders built our data centers, they were really really scrappy in every decision they made,” Pichai said. “Often, constraints lead to creativity. Not all problems are always solved by headcount.”
Jakub Porzycki | Nurphoto | Getty Images
LONDON — Britain’s financial services watchdog on Monday announced a new tie-up with U.S. chipmaker Nvidia to let banks safely experiment with artificial intelligence.
The Financial Conduct Authority said it will launch a so-called Supercharged Sandbox that will “give firms access to better data, technical expertise and regulatory support to speed up innovation.”
Starting from October, financial services institutions in the U.K. will be allowed to experiment with AI using Nvidia’s accelerated computing and AI Enterprise Software products, the watchdog said in a press release.
The initiative is designed for firms in the “discovery and experiment phase” with AI, the FCA noted, adding that a separate live testing service exists for firms further along in AI development.
“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so,” Jessica Rusu, the FCA’s chief data, intelligence and information officer, said in a statement. “We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
The FCA’s new sandbox addresses a key issue for banks, which have faced challenges shipping advanced new AI tools to their customers amid concerns over risks around privacy and fraud.
Large language models from the likes of OpenAI and Google send data back to overseas facilities — and privacy regulators have raised the alarm over how this information is stored and processed. There have meanwhile been several instances of malicious actors using generative AI to scam people.
Nvidia is behind the graphics processing units, or GPUs, used to train and run powerful AI models. The company’s CEO, Jensen Huang, is expected to give a keynote talk at a tech conference in London on Monday morning.
Last year, HSBC’s generative AI lead, Edward Achtner, told a London tech conference he sees “a lot of success theater” in finance when it comes to artificial intelligence — hinting that some financial services firms are touting advances in AI without tangible product innovations to show for it.
He added that, while banks like HSBC have used AI for many years, new generative AI tools like OpenAI’s ChatGPT come with their own unique compliance risks.
Sam Altman’s identity verification venture World is launching its eye-scanning Orb product in the U.K.
World
LONDON — World, the biometric identity verification project co-founded by OpenAI CEO Sam Altman, is set to launch in the U.K. this week.
The venture, which uses a spherical eye-scanning device called the Orb to scan people’s eyes, will become available in London from Thursday and is planning to roll out to several other major U.K. cities — including Manchester, Birmingham, Cardiff, Belfast, and Glasgow — in the coming months.
The project aims to authenticate the identity of humans with its Orb device and prevent the fraudulent abuse of artificial intelligence systems like deep fakes.
It works by scanning a person’s face and iris and then creating a unique code to verify that the individual is a human and not an AI.
Once someone has created their iris code, they are then gifted some of World’s WLD cryptocurrency and can use an anonymous identifier called World ID to sign into various applications. It currently works with the likes of Minecraft, Reddit and Discord.
From ‘science project’ to reality
Adrian Ludwig, chief architect of Tools for Humanity, which is a core contributor to World, told CNBC on a call that the project is seeing significant demand from both enterprise users and governments as the threat of AI to defraud various services — from banking to online gaming — grows.
“The idea is no longer just something that’s theoretical. It’s something that’s real and affecting them every single day,” he said, adding that World is now transitioning “from science project to a real network.”
The venture recently opened up shop in the U.S. with six flagship retail locations including Austin, Atlanta, Los Angeles, Nashville, Miami and San Francisco. Ludwig said that looking ahead, the plan is to “increase the number of people who can be verified by an order of magnitude over the next few months.”
Ever since its initial launch as “Worldcoin” in 2021, Altman’s World has been plagued by concerns over how it could affect users’ privacy. The startup says it addresses these concerns by encrypting the biometric data collected and ensuring the original data is deleted.
On top of that, World’s verification system also depends on a decentralized network of users’ smartphones rather than the cloud to carry out individual identity checks.
Still, this becomes harder to do in a network with billions of users like Facebook or TikTok, for example. For now, World has 13 million verified users and is planning to scale that up.
Ludwig argues World is a scalable network as all of the computation and storage is processed locally on a user’s device — it’s only the infrastructure for confirming someone’s uniqueness that is handled by third-party providers.
Digital ID schemes
Ludwig says the way technology is evolving means it’s getting much easier for new AI systems to bypass currently available authentication methods such as facial recognition and CAPTCHA bot prevention measures.
He sees World serving a pertinent need in the transition from physical to digital identity systems. Governments are exploring digital ID schemes to move away from physical cards.
However, so far, these attempts have been far from perfect.
One example of a major digital identity system is India’s Aadhaar. Although the initiative has seen widespread adoption, it has also been the target of criticisms for lax security and allegedly worsening social inequality for Indians.
“We’re beginning to see governments now more interested in how can we use this as a mechanism to improve our identity infrastructure,” Ludwig told CNBC. “Mechanisms to identify and reduce fraud is of interest to governments.”
The technologist added that World has been talking to various regulators about its identity verification solution — including the Information Commissioner’s Office, which oversees data protection in the U.K.
“We’ve been having lots of conversations with regulators,” Ludwig told CNBC. “In general, there’s been lots of questions: how do we make sure this works? How do we protect privacy? If we engage with this, does it expose us to risks?”
“All of those questions we’ve been able to answer,” he added. “It’s been a while since we’ve had a question asked we didn’t have an answer to.”
Tesla displays Optimus next to two of its vehicles at the World Robot Conference in Beijing on Aug. 22, 2024.
CNBC | Evelyn
Tesla’s vice president of Optimus robotics, Milan Kovac, said on Friday that he’s leaving the company.
In a post on X, Kovac thanked Tesla CEO Elon Musk and reminisced about his tenure, which began in 2016.
“I want to thank @elonmusk from the bottom of my heart for his trust and teachings over the decade we’ve worked together,” Kovac wrote. “Elon, you’ve taught me to discern signal from noise, hardcore resilience, and many fundamental principles of engineering. I am forever grateful. Tesla will win, I guarantee you that.”
Tesla is developing Optimus with the aim of someday selling it as a bipedal, intelligent robot capable of everything from factory work to babysitting.
In a first-quarter shareholder deck, Tesla said it was on target for “builds of Optimus on our Fremont pilot production line in 2025, with wider deployment of bots doing useful work across our factories.”
During Tesla’s 2024 annual shareholder meeting, Musk characterized himself as “pathologically optimistic,” then claimed the humanoid robots would lift the company’s market cap to $25 trillion at an unspecified future date.
In recent weeks, Musk told CNBC’s David Faber that Tesla is now training its Optimus systems to do “primitive tasks,” like picking up objects, open a door or throw a ball.
Competitors in the space include Boston Dynamics, Agility Robotics, Apptronik, 1X and Figure.
Kovac had previously served as the company’s director of Autopilot software engineering. He rose to lead the company’s Optimus unit as vice president in 2022.
Musk personally thanked Kovac for his “outstanding contributions” to the business.
Tesla didn’t respond to a request for comment.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway