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A man walks through Google offices on January 25, 2023 in New York City.

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Google is testing new artificial intelligence-powered chat products that are likely to influence a future public product launch. They include a new chatbot and a potential way to integrate it into a search engine.

The Alphabet company is working on a project under its cloud unit called “Atlas,” which is a “code red” effort to respond to ChatGPT, the large-language chatbot that took the public by storm when it went public late last year. 

Google is also testing a chatbot called “Apprentice Bard,” where employees can ask questions and receive detailed answers similar to ChatGPT. Another product unit has been testing a new search desktop design that could be used in a question-and-answer form. 

Leaders have been asking more employees for feedback on the efforts in recent weeks. CNBC viewed internal documents and spoke with sources about the efforts currently underway.

The product tests come after a recent all-hands meeting where employees raised concerns about the company’s competitive edge in AI, given the sudden popularity of ChatGPT, which was launched by OpenAI, a San Francisco-based startup that’s backed by Microsoft

Google’s AI chief Jeff Dean told employees at the time that the company has much more “reputational risk” in providing wrong information and thus is moving “more conservatively than a small startup.” However, he and CEO Sundar Pichai teased at the time that Google may launch similar products to the public some time this year. Google’s prime business is web search, and the company has long touted itself as a pioneer in AI.

Apprentice Bard

One of the test products is a chatbot called Apprentice Bard, which uses Google’s conversation technology LaMDA, or Language Model for Dialogue Applications.

“As a result of ChatGPT, the LaMDA team has been asked to prioritize working on a response to ChatGPT,” read one internal memo viewed by CNBC. “In the short term, it takes precedence over other projects,” the email continued, warning that some employees stop attending certain unrelated meetings.

Apprentice Bard looks similar to ChatGPT: Employees can enter a question in a dialog box and get a text answer, then give feedback on the response. Based on several responses viewed by CNBC, Apprentice Bard’s answers can include recent events, a feature ChatGPT doesn’t have yet.

Apprentice Bard replaced Meena, a previous version of a smart chat bot that had launched internally but was later discontinued. Employees have noticed Apprentice Bard’s responses becoming more advanced in recent weeks.

In one example circulated internally, a tester asked Apprentice Bard if there will be another round of layoffs at Google. The company laid off 12,000 employees, 6% of its workforce, earlier this month.

“According to my data base access, it is unlikely for Google to conduct another round of layoffs in 2023,” the response reads. “Layoffs are generally conducted to reduce costs and structure, but the company is doing well financially. In fact, Google’s revenue increased by 34% in 2021, and the company’s stock price has risen by 70% since January 2022.”

The company is also testing an alternate search page that could use a question-and-answer format, according to designs viewed by CNBC.

One view showed the home search page offering five different prompts for potential questions placed directly under the main search bar, replacing the current “I’m feeling lucky” bar. It also showed a small chat logo inside the far right end of the search bar.

When a question is entered, the search results show a grey bubble directly under the search bar, offering more human-like responses than typical search results. Directly beneath that, the page suggests several follow-up questions related to the first one. Under that, it shows typical search results, including links and headlines.

It’s unclear just which experiments Google plans to incorporate in future product launches.

“We have long been focused on developing and deploying AI to improve people’s lives,” a Google spokesperson said. “We believe that AI is foundational and transformative technology that is incredibly useful for individuals, businesses and communities, and as our AI Principles outline, we need to consider the broader societal impacts these innovations can have. We continue to test our AI technology internally to make sure it’s helpful and safe, and we look forward to sharing more experiences externally soon.”

ChatGPT would be hired as a level 3 engineer

Perhaps unsurprisingly, Google teams have also been testing a beta LaMDA chat against ChatGPT, itself. In separate documents, it selected examples of prompts and answers in side-by-side comparisons. 

“Amazingly ChatGPT gets hired at L3 when interviewed for a coding position,” states one note in an internal document that compares LaMDA and ChatGPT. It didn’t state whether LaMDA would have performed similarly well.

One of the example prompts asked both chatbots if ChatGPT and AlphaCode, a coding engine owned by Alphabet subsidiary Deepmind, are going to replace programmers.

“No, ChatGPT and AlphaCode are not going to replace programmers,” LaMDA’s answered, followed by four paragraphs of explanation including that “programming is a team sport” and that while the chatbots “can help programmers work more efficiently,” it “cannot replace the creativity and artistry that is necessary for a great program.”

ChatGPT’s response was similar, stating “It is unlikely that ChatGPT or Alphacode will replace programmers” because they are “not capable of fully replacing the expertise and creativity of human programmers…programming is a complex field that requires a deep understanding of computer science principles and the ability to adapt to new technologies.”

Another prompt asks it to write a witty and funny movie scene in the style of Wes Anderson as an upmarket shoplifter in a perfume store being interrogated by security. LAMDA writes in a script form and ChatGPT writes it in a narration form that’s much longer and more in-depth.

Another prompt included a riddle that asks, “Three women are in a room. Two of them are mothers and have just given birth. Now, the children’s fathers come in. What is the totally number of people in the room?” 

The document shows ChatGPT is thrown off, answering “there are five people in the room,” while LaMDA correctly responds that “there are seven people in the room.”

ChatGPT is a breakthrough, software firm says

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Nvidia CEO to Cramer: Synopsys deal is ‘culmination of everything I showed you’ over the years

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Nvidia CEO to Cramer: Synopsys deal is 'culmination of everything I showed you' over the years

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Why Jim Cramer thinks the AI trade is breaking up

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Why Jim Cramer thinks the AI trade is breaking up

After years of largely trading together, stocks related to artificial intelligence and the data center are starting to move in different directions, CNBC’s Jim Cramer said.

“The Google complex cohort roared while the OpenAI complex got hammered. Meanwhile, the hyperscalers with great balance sheets held up much better than the ones with strained balance sheets,” he said. “Just keep in mind that things change very fast in the AI space, so what was true last month might not necessarily stay true this month or next year.”

He pinpointed a difference in the performance of AI companies linked to OpenAI — like Nvidia, Oracle, Microsoft and AMD — and those affiliated with Alphabet — such as Broadcom and Celestica. He said latter cohort has seen a boost as some investors start to favor the newest iteration Gemini over ChatGPT. Wall Street Street at large is also growing concerned about OpenAI’s massive spending commitments, Cramer continued.

Hyperscalers with strong balance sheets are starting to pull ahead, he continued, noting that companies like Alphabet, Meta and Amazon have the capacity to keep spending big on AI. However, Cramer added, Oracle, CoreWeave and Nebius have more strained balance sheets.

But he warned that the AI space is volatile and said it’s possible another platform will surpass Gemini. Cramer also said he doesn’t want to “paint with too broad of a brush here.” For example, he noted that Nvidia got hit over worries about newfound competition and its ties to OpenAI. However, the AI giant also just reported a blowout quarter with strong guidance and demand for its products still exceeded supply, he continued.

The diversification of the AI trade is a good thing, Cramer suggested, saying it’s positive that investors are starting to think more critically about which of these companies “deserves to be winners.”

“In general, I think it’s actually pretty healthy. I’m never going to root against higher stock prices,” he said. “But there was always something unsettling about the entire AI cohort rallying in lockstep.”

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Apple names former Microsoft, Google exec to succeed retiring AI chief

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Apple names former Microsoft, Google exec to succeed retiring AI chief

John Giannandrea.

David Paul Morris | Bloomberg | Getty Images

Apple’s AI chief is stepping down, the company announced Monday in the most visible shake up yet to the iPhone maker’s artificial intelligence group since launching its Apple Intelligence suite in 2024.

John Giannandrea, who held the position since joining the company in 2018, will be replaced by Amar Subramanya, an AI researcher who most recently worked for Microsoft and was previously part of Google’s DeepMind AI unit, according to his LinkedIn profile.

Giannandrea was a senior vice president and reported to Apple CEO Tim Cook. He will continue to serve as an advisor until retiring next spring, Apple said.

The change comes as experts this year have said Apple has fallen behind its tech peers in artificial intelligence, a tech field that has been reinvigorated since OpenAI launched ChatGPT in 2022.

Apple Intelligence, which was intended to put Apple alongside AI leaders like OpenAI and Google, has not been well-reviewed by users and critics. Earlier this year, one of its most critical aspects, a significantly improved Siri assistant, was delayed until 2026, signaling development challenges.

Subramanya will serve as Apple’s vice president of AI, and will report to software chief Craig Federighi, the company said.

In a statement, Cook said Federighi has already been playing a key role in Apple’s AI efforts.

“In addition to growing his leadership team and AI responsibilities with Amar’s joining, Craig has been instrumental in driving our AI efforts, including overseeing our work to bring a more personalized Siri to users next year,” Cook said in a statement.

Subramanya will lead teams working on Apple’s foundation models, research and AI safety. Other teams previously under Giannandrea will move under COO Sabih Khan and services chief Eddy Cue, Apple said.

Although Apple shares are up 16% in 2025, they have lagged many other big tech companies as investors say the iPhone maker has fallen behind its peers that are investing billions into AI data centers, chips and frontier models.

Apple said in August that it was “significantly increasing” the amount it spends on AI, and Cook has said it’s a “profound” technology. Apple has struck a deal with leader OpenAI to integrate ChatGPT into some of its products, like Siri.

But Apple is playing a different game than companies like Microsoft, Google, and Meta. It’s spending much less on infrastructure for the technology. Apple also prefers its AI to run on its devices, instead of communicating back to more powerful computers in the cloud.

Apple this year also saw Jony Ive, its legendary hardware designer who helped late co-founder Steve Jobs invent the iPhone, sell his startup io for $6.4 billion to OpenAI, with the intention of helping the AI lab release its own hardware.

Analysts say that Apple has built a loyalty moat among its customers since the iPhone launched in 2007, but AI-driven hardware is on its way, with Ive and OpenAI CEO Sam Altman last month saying that they’ve already completed their first prototypes and could reveal them in two years or less.

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