Google CEO Sundar Pichai speaks on-stage during the Google I/O keynote session at the Google Developers Conference in Mountain View, California, on May 10, 2023.
Josh Edelson | AFP | Getty Images
Google‘s effort to rapidly add new artificial intelligence technology into its core products is making its way into the advertising world, CNBC has learned.
The company has given the green light to plans for using generative AI, fueled by large language models (LLMs), to automate advertising and ad-supported consumer services, according to internal documents.
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Last week, Google unveiled PaLM 2, its latest and most powerful LLM, trained on reams of text data that can come up with human-like responses to questions and commands. Certain groups within Google are now planning to use PaLM 2-powered tools to allow advertisers to generate their own media assets and to suggest videos for YouTube creators to make, documents show. .
Google has also been testing PaLM 2 for YouTube youth content for things like titles, and descriptions. For creators, the company has been using the technology to experiment with the idea of providing five video ideas based on topics that appear relevant.
With the AI chatbot craze speedily racing across the tech industry and capturing the fascination of Wall Street, Google and its peers, including Microsoft, Meta and Amazon, are rushing to embed their most sophisticated models in as many products as possible. The urgency has been particularly acute at Google since the public launch late last year of Microsoft-backed OpenAI’s ChatGPT raised concern that the future of internet search was suddenly up for grabs.
Meanwhile, Google has been mired in a multi-quarter stretch of muted revenue growth after almost two decades of consistent and rapid expansion. With fears of a recession building since last year, advertisers have been reeling in online marketing budgets, wreaking havoc on Google, Facebook and others. Specific to Google, paid search advertising conversion rates have decreased this year across most industries.
Beyond search, email and spreadsheets, Google wants to use generative AI offerings to increase spending to boost revenue and improve margins, according to the documents. An AI-powered customer support strategy could potentially run across more than 100 Google products, including, Google Play Store, Gmail, Android Search and Maps, the documents show.
Automated support chatbots could provide specific answers through simple, clear sentences and allow for follow-up questions to be asked before suggesting an advertising plan that would best suit an inquiring customer.
A Google spokesperson declined to comment.
Google recently offered Google Duet and Chat assistance, allowing people to use simple natural language to get answers on cloud-related questions, such as how to use certain cloud services or functions, or to get detailed implementation plans for their projects.
Google is also working on its own internal Stable Diffusion-like product for image creation, according to the documents. Stable Diffusion’s technology, similar to OpenAI’s DALL-E, can quickly render images in various styles with text-based direction from the user.
Google’s plan to push its latest AI models into advertising isn’t a surprise. Last week, Facebook parent Meta unveiled the AI Sandbox, a “testing playground” for advertisers to try out new generative AI-powered ad tools. The company also announced updates to Meta Advantage, its portfolio of automated tools and products that advertisers can use to enhance their campaigns.
On May 23, Google will be introducing new technologies for advertisers at its annual event, Google Marketing Live. The company hasn’t offered specifics about what it will be announcing, but it’s made clear that AI will be a central theme.
“You’ll discover how our AI-powered ads solutions can help multiply your marketing expertise and drive powerful business results in today’s changing economy,” the website for the event says.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.