GOOGLE HAS A SHOCKING WEEK; NO MOAT?
From employee deaths to leaks and AI disarray, this was not a great week for the search giant. While AI, and Google’s use of it, was a common thread, the picture that is beginning to be painted is a company that is huge, in a pickle and not in control of everything people assumed the company to be.
Google is changing the “10 blue links” search to compete with platforms like TikTok and leverage AI to provide a better results for the user. Fine and good, but this week also saw a leaked memo from a Google employee that suggested some within the company are concerned about the over-reliance on AI and the potential consequences of these technologies. The memo also suggests that Google may not have a "secret sauce" that sets it apart from other companies in the AI space. The piece suggests Google has no moat for protection, and open-source AI will pummel Google. No real shocks there, although the leak itself is a worrying trend along with Google’s push to stop sharing AI research.
Google also made a hardware announcement ahead of I/O (read: it leaked) for the Pixel Fold smartphone. Not a flip phone, the butterfly design will join the busy market that Samsung and Huawei dominate. Look out for full details at Google I/O on the 10th. A Google exec also criticised Canada's proposed online news bill, calling it "unreasonable" and warning that it could harm the country's tech industry. Not the only country making a stand for big tech paying news orgs (California), the story highlights the tension and regulation that’s ahead for companies like Google.
Finally, the new Passkey feature got tongues wagging. The feature aims to provide users with a more secure and convenient way to log into their accounts using a physical key. Passwords are so last year. Privacy and protection PR tick box exercise aside, this is a good move for all concerned.
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__ DO __ Expect a lot of talk about AI at Google I/O. Google will want to show strength, poise and planning. Do Google not have a moat? The fact they were invited to the White House, when Meta was not, is telling in and of itself. Beyond this, the brand dominance of OpenAI (along with a powerful backer) doesn’t necessarily mean Google is doomed. Nor does it mean that Google will have an easy time. If a moat is possible in AI, it’ll be to do with privacy and pricing. Google may become the defacto trusted and used option because they can integrate into understood products that have a stranglehold. OpenAI looks happy burning through other people’s money and has weathered privacy issues (for now, at least) pretty unscathed. // __ DON’T __ For a second, think Google is where they need to be. Overall, these stories paint a complex picture of Google's future. While the company is clearly investing heavily in AI and machine learning, it also faces criticism and concerns about the potential downsides of these technologies. At the same time, Google is expanding into new hardware markets and grappling with regulatory challenges. It remains to be seen how these various factors will shape Google's trajectory in the coming years.
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/// TRY: Learning a new language by watching Netflix and YouTube. [Trancy]
/// WATCH: The on-demand version of TBD Conference ‘Materia’. [Newcon]
/// BUY: Fold laptop stand, compact, beautiful and perfect for remote work. [Native Union]
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