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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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Navan, corporate travel and expense startup, files for initial public offering

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Navan, corporate travel and expense startup, files for initial public offering

By year-end there should be around 20 tech IPOS, says Barclays' Kristin DeClark

Navan, the business travel, payments, and expense management startup, filed on Friday afternoon to go public.

Its S-1 filing with the Securities and Exchange Commission indicates that the company plans to list on the Nasdaq Global Select Market under the symbol “NAVN.”

Navan reported trailing 12-month revenue of $613 million (up 32%) across over 10,000 customers, and gross bookings of $7.6 billion (up 34%), according to the S-1 filing.

Goldman Sachs and Citigroup will act as lead book-running managers for the proposed offering.

Navan ranked No. 39 on this year’s CNBC Disruptor 50 list, and also made the 2024 list.

The IPO market has bounced back this year, with deal activity up 56% across 156 deals (roughly 200 IPO filings in all) and $30 billion in proceeds, up over 23% year over year, according to IPO tracker Renaissance Capital. It has been the best year for IPOs since 2021, though still far below the Covid offering boom years, when over $142 billion (2021) and $78 billion (2020) was raised by IPOs.

This year’s deal flow has been highlighted by hot AI names like Coreweave, as well as some of the startup world’s most highly valued firms from the past decade, such as fintech Klarna and design firm Figma, crypto companies Circle, Bullish and Gemini, and some long-awaited IPO candidates finally hitting the market, such as Stubhub this week, though its shares have slumped since the first day of trading. Top Amazon reseller Pattern went public on Friday.

Other startups are expected to pursue deals given the increased investor appetite.

The Renaissance IPO ETF is up 20% this year.

Launched by CEO Ariel Cohen and co-founder Ilan Twig in 2015, Navan set out to disrupt a business travel sector where incumbents relied on clunky legacy tools and fragmented workflows.

The Palo Alto-based company, formerly called TripActions, refers to itself as an “all-in-one super app” for corporate travel and expenses.

Customers include Unilever, Adobe, Christie’s, Blue Origin and Geico.

It has also been pushing further into AI, with a virtual assistant named Ava handling approximately 50% of user interactions during the six months ended July 31, according to the filing, and a proprietary AI framework called Navan Cognition supporting its platform, as well as proprietary cloud infrastructure.

“We built Navan for the road warriors, for CEOs and CFOs who understand travel’s critical importance to their strategy, the finance teams who demand precision and control, the executive assistants juggling itineraries, and the program admins ensuring seamless events,” the co-founders wrote in an IPO filing letter.

“We saw firsthand the frustration of clunky, outdated systems. Travelers were forced to cobble together solutions, wait for hours on hold to book or change travel, and negotiate with travel agents. They struggled to adhere to company policies, with little visibility into those policies, and after all that, they spent even more time on tedious expense reports after a trip. We felt the pain of finance teams struggling to gain visibility into fragmented travel spending and to enforce policies, and the frustration of suppliers unable to connect directly with the high-value business travelers they sought to serve,” they wrote in the filing.

Revenue grew 33% year-over-year from $402 million in fiscal 2024 to $537 million in fiscal 2025, according to the S-1 filing. The company reported a net loss that decreased 45% year-over-year from $332 million in fiscal 2024 to $181 million in fiscal 2025. Gross margin improved from 60% in fiscal 2024 to 68% in fiscal 2025.

The business travel and expense space is crowded, with fellow Disruptors Ramp and Brex, and TravelPerk, as well as incumbents like SAP Concur and American Express Global Business Travel.

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Microsoft raises Xbox prices in U.S. due to economic environment

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Microsoft raises Xbox prices in U.S. due to economic environment

A gamer plays soccer title Pro Evolution Soccer 2019 on an Xbox console.

Sezgin Pancar | Anadolu Agency via Getty Images

Microsoft said on Friday that it will increase the recommended retail price of several Xbox consoles in the U.S. starting in October because of “changes in the macroeconomic environment.”

The company said it would not increase prices for accessories such as controllers and headsets, and that prices in other countries would stay the same.

While Microsoft didn’t explicitly attribute the increase to the Trump administration’s tariffs, many consumer companies have been warning for months that higher prices are on the way. President Donald Trump has issued tariffs this year on multiple countries with a stated goal to bring more manufacturing to the U.S.

“We understand that these changes are challenging, and they were made with careful consideration,” Microsoft said on its website.

It’s the second time Microsoft has raised prices on its consoles in the U.S. this year. Rivals Sony and Nintendo have also raised console prices in the U.S. as Trump’s tariffs went into effect.

Here are the changes, according to a PDF posted on Microsoft’s website:

  • Xbox Series S will start at $399, up from $379 previously. A version with 1TB of storage costs $449.
  • Xbox Series X Digital console now costs $599, a $50 increase. The Xbox Series X with a disc drive also got a $50 increase to $649.
  • The most expensive version, with 2TB of storage, costs $799, up from $729.

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StubHub’s stock plunges 10% in third day on NYSE as post-IPO slump deepens

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StubHub's stock plunges 10% in third day on NYSE as post-IPO slump deepens

Ticket reseller StubHub signage on display at the New York Stock Exchange for the company’s IPO on Sept. 17, 2025.

NYSE

After a long wait to get public, StubHub has had a rough start to life on the New York Stock Exchange.

Shares of the online ticket vendor dropped 10% on Friday, falling for a third straight day since debuting on Wednesday. At $18.46, the stock is now down 21% from its IPO price of $23.50.

StubHub, trading under ticker symbol “STUB,” has lagged behind fellow market newcomers like online lender Klarna, design software company Figma and stablecoin issuer Circle, which delivered early returns for investors following their recent IPOs. Shares of cybersecurity firm Netskope also rose 10% on Friday in their second trading day, after an initial pop on Thursday.

StubHub had been trying to go public for the past several years, but delayed its debut twice. The most recent stall came in April after President Donald Trump’s announcement of sweeping tariffs roiled markets. The company filed an updated prospectus in August, effectively restarting the process to go public, and has since seen its market cap slip to about $6.8 billion from $8.6 billion at its IPO.

Founded in 2000, StubHub primarily generates revenue from connecting buyers with ticket resellers. In the first quarter, revenue rose 10% from a year earlier to $397.6 million. The company’s net loss widened to $35.9 million from $29.7 million a year ago.

StubHub CEO Eric Baker told CNBC on Wednesday that the company expects recently introduced federal regulations around transparent ticket pricing to cause a “one-time” hit to its financial results.

Regulators are zeroing in on online ticket sellers over their pricing mechanisms and whether the companies are doing enough to keep automated purchasing bots in check. The Federal Trade Commission on Thursday sued StubHub rival Live Nation Entertainment, the parent company of Ticketmaster, accusing it of illegal resale tactics.

While StubHub has failed to excite Wall Street, its struggles haven’t seeped into other deals as the tech IPO market continues to show signs of a resurgence after an extended dry spell. Amazon reseller Pattern Group saw its stock rise 12% on Friday, though shares initially slipped 6%.

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