Alphabet shares surge with new quantum chip launch

Alphabet’s stock jumped 5% on Tuesday after the company unveiled Willow, a groundbreaking chip that addresses a major hurdle in quantum computing. Introduced on Monday, Willow solved a problem in five minutes that would take classical computers longer than the age of the universe. This breakthrough brings quantum computing closer to practical applications in science, medicine, and finance.

Quantum computers, powered by qubits, promise incredible speed but face challenges with error rates that grow with scale. Google’s Willow chip reduces errors exponentially by stringing qubits together in a way that allows for real-time error correction. This innovation marks a significant step toward making quantum computing reliable and commercially viable.

While the technology is still in its infancy, experts believe Willow could drive breakthroughs across industries. Alphabet’s shares, up 25% this year, outpaced market expectations, with investors optimistic about the potential impact of quantum computing on the company’s future. Other tech leaders like Microsoft and Quantinuum are also advancing in the race to commercialise quantum systems.

Google invests $800 million in clean energy developer to power data centres and support US grid sustainability

Google has joined forces with TPG Rise Climate and other investors to back clean energy developer Intersect Power in a funding round exceeding $800 million. The investment aligns with Google’s strategy to expand its domestic data centre capacity as demand for AI-driven cloud services surges.

These data centres will be part of innovative industrial parks co-developed with Intersect Power, integrating gigawatts of clean energy generation alongside state-of-the-art computing facilities. That approach reflects a shift in addressing the growing strain on US power grids, exacerbated by the energy-intensive requirements of generative AI technologies.

By situating data centres adjacent to carbon-free power plants, Google aims to streamline energy delivery, enhance grid reliability, and fast-track project timelines. The first co-located facility is slated to begin operations in 2026, with full completion expected by 2027.

Google, a primary customer of Intersect Power’s new clean energy facilities, underscores that these projects are designed to launch simultaneously with their data centres. That directly contributes to grid stability while meeting Google’s operational energy needs. Founded in 2016, Intersect Power focuses on scalable, low-carbon energy solutions and is backed by TPG’s climate-focused fund.

Amazon launches AI lab led by Adept co-founder

Amazon is establishing the Amazon AGI SF Lab in San Francisco to develop cutting-edge AI agent technology. This new initiative will be led by David Luan, co-founder of the AI startup Adept, which Amazon effectively acquired earlier this year. The lab’s primary focus will be creating agents capable of performing complex tasks across various software, web browsers, and even real-world applications.

Amazon’s move builds on its broader efforts in artificial general intelligence (AGI) and aligns with its recent acquisition of talent and technology from Adept. Luan will work alongside robotics expert Pieter Abbeel, who joined Amazon through its deal with Covariant. The lab plans to start with Adept’s existing team while adding a few dozen researchers from fields like quantitative finance and physics.

The company aims to develop AI agents that can learn from human feedback, self-correct, and intuit user goals, advancing a vision of intelligent systems that go beyond static tools. This initiative positions Amazon in the competitive “agentic AI” sector, which industry analysts estimate could grow to $31B by year-end.

Amazon’s AGI SF Lab comes amid a broader push by major tech players to develop similar autonomous systems. With competitors such as OpenAI, Anthropic, and Google already making strides in this field, Amazon’s new lab highlights its commitment to being a leader in the next wave of AI innovation.

Google and Meta under European scrutiny over teen ad partnership

European regulators are investigating a previously undisclosed advertising partnership between Google and Meta that targeted teenagers on YouTube and Instagram, the Financial Times reports. The now-cancelled initiative aimed at promoting Instagram to users aged 13 to 17 allegedly bypassed Google’s policies restricting ad personalisation for minors.

The partnership, initially launched in the US with plans for global expansion, has drawn the attention of the European Commission, which has requested extensive internal records from Google, including emails and presentations, to evaluate potential violations. Google, defending its practices, stated that its safeguards for minors remain industry-leading and emphasised recent internal training to reinforce policy compliance.

This inquiry comes amid heightened concerns about the impact of social media on young users. Earlier this year, Meta introduced enhanced privacy features for teenagers on Instagram, reflecting the growing demand for stricter online protections for minors. Neither Meta nor the European Commission has commented on the investigation so far.

Google challenges US order for payment service supervision

The United States Consumer Financial Protection Bureau (CFPB) announced on Friday it will subject Google Payment Corp., Alphabet‘s payment arm, to federal oversight, citing potential risks to consumers. The move follows complaints involving fraud and unauthorised transactions, although the agency stopped short of alleging direct misconduct.

Google has filed a lawsuit challenging the order, arguing that the service in question is no longer active and poses no risk. The CFPB, however, maintains its authority to regulate even discontinued services if they posed prior risks.

The announcement comes as the Biden administration intensifies regulation of tech-driven financial services, seeking parity with traditional banks. Last month, the CFPB finalised rules extending banking supervision to tech firms offering payment and digital wallet services, a move opposed by Republican lawmakers.

With Biden leaving office and President-elect Trump set to return, the decision may face political challenges. Google’s case highlights the broader conflict between Silicon Valley and federal regulators over financial innovation.

Google’s AI advances weather forecasting

Google’s DeepMind has introduced GenCast, a cutting-edge AI weather prediction model that outperforms the European Centre for Medium-Range Weather Forecasts’ (ECMWF) ENS, widely regarded as the global leader in operational forecasting. A study in Nature highlighted GenCast’s superior accuracy, predicting weather more effectively 97.2% of the time during a comparative analysis of 2019 data.

Unlike earlier deterministic models, GenCast creates a complex probability distribution of potential weather scenarios by generating 50 or more forecasts per instance. This ensemble approach provides a nuanced understanding of weather trajectories, elevating predictive reliability.

Google is integrating GenCast into its platforms like Search and Maps, while also planning to make real-time and historical AI powered forecasts accessible for public and research use. With this advancement, the tech giant aims to revolutionise weather forecasting and its applications worldwide.

Google’s quantum computing leap forward with Willow

In the quantum computing world, Google’s Quantum AI lab is at the forefront, pioneering a new era where the rules of quantum mechanics dictate the dance of data. Unlike the binary world of classical computing, which is all about ones and zeros, quantum computing introduces qubits. These aren’t just your average bits; they can exist in multiple states simultaneously, thanks to the whims of superposition and entanglement, making them the rock stars of the computational universe.

Enter Willow, Google’s latest quantum chip, which could be described as a virtuoso in the orchestra of quantum technology. Willow isn’t just another chip; it’s a leap towards solving some of humanity’s most complex puzzles. This chip has mastered the art of error correction, a challenge that’s been the quantum computing community’s white whale for nearly three decades. With Willow, errors don’t just decrease; they do so exponentially as more qubits join the ensemble.

But Willow’s talents don’t stop at error correction. In a performance that would make even the universe blink in disbelief, Willow completed a computation in under five minutes that would take the world’s fastest supercomputers a mind-boggling ten septillion years. To put that into perspective, that’s longer than the age of our universe, suggesting that Willow might be tapping into some multiversal jazz.

The magic of Willow is crafted in Google’s specialised quantum lab in Santa Barbara, where every component from qubit gates to the chip’s architecture is meticulously tuned for harmony. Willow boasts 105 qubits, each a note in this symphony of computation, offering both numbers and quality. Focusing on quality over quantity ensures that Willow isn’t just another player but a lead in the orchestra.

Willow’s performance sets the stage for the next act: to conduct a computation beyond the reach of classical computers and relevant to real-world applications. Whether it’s accelerating drug discovery, enhancing AI, or solving energy crises, Willow and its successors are poised to turn theoretical quantum wonders into practical symphonies.

The journey with Willow is just beginning, and Google invited the curious minds of researchers, engineers, and developers to join this quantum odyssey. With open-source software and educational platforms like Coursera, Google aims to democratise quantum computing, hoping to inspire the next generation to compose their quantum symphonies, solving problems that today’s classical computers can only dream of.

Legal clash erupts as Google contests CFPB payment authority

Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) over its decision to place the company’s payment division under federal supervision. The legal dispute arises from the CFPB’s claims that Google’s handling of its payment products, including a discontinued peer-to-peer payment service, posed risks to consumers.

The lawsuit, lodged in the Washington, DC district court, argues that the CFPB’s actions constitute government overreach. Google asserts the decision was based on limited and unverified user complaints, stating that a discontinued product cannot pose consumer risks. The CFPB, however, maintains that its supervisory authority is essential to enforcing compliance with financial laws, even for defunct services.

Google spokesperson José Castañeda described the agency’s oversight as unnecessary, reiterating that the company’s payment products have always prioritised user safety. Google also claims the CFPB set an unreasonably low standard for determining consumer risks, leading to undue regulatory burdens.

The CFPB’s authority to oversee nonbank financial institutions, announced in 2022, allows it to conduct examinations and intervene against potential risks to consumers. Google contends that applying such measures to its payments division is unjustified and aims to challenge the agency’s approach in court.

Google’s new AI sparks concerns over emotion detection

Google’s newest AI, the PaliGemma 2 model, has drawn attention for its ability to interpret emotions in images, a feature unveiled in a recent blog post. Unlike basic image recognition, PaliGemma 2 offers detailed captions and insights about people and scenes. However, its emotion detection capability has sparked heated debates about ethical implications and scientific validity.

Critics argue that emotion recognition is fundamentally flawed, relying on outdated psychological theories and subjective visual cues that fail to account for cultural and individual differences. Studies have shown that such systems often exhibit biases, with one report highlighting how similar models assign negative emotions more frequently to certain racial groups. Google says it performed extensive testing on PaliGemma 2 for demographic biases, but details of these evaluations remain sparse.

Experts also worry about the risks of releasing this AI technology to the public, citing potential misuse in areas like law enforcement, hiring, and border control. While Google emphasises its commitment to responsible innovation, critics like Oxford’s Sandra Wachter caution that without robust safeguards, tools like PaliGemma 2 could reinforce harmful stereotypes and discriminatory practices. The debate underscores the need for a careful balance between technological advancement and ethical responsibility

New tools and features arrive for Google Pixel devices

Google has rolled out a comprehensive feature update for Pixel and Android devices this December, introducing smarter tools and usability enhancements. Key among these is the expansion of Gemini AI extensions, enabling seamless interactions with Spotify, messaging, and smart home devices. Gemini now remembers user preferences, such as dietary habits, to provide personalised suggestions. It also powers enhanced accessibility tools, such as image Q&A in the Lookout app for visually impaired users.

Pixel devices received significant upgrades, including theft-protection updates requiring biometric authentication for sensitive changes. Expressive captions were introduced to reflect emotions like whispering or applause in Android content. The Pixel 9 series stands out with improved screenshot management, HDR support for Instagram, and smarter call-screening features. Pixel Fold devices now offer a dual-screen portrait mode, enhancing photo framing.

Wearables and tablets weren’t left out. The Pixel Watch now integrates with Nest Doorbell, allowing users to view visitors at the door. Expanded fitness metrics are now available across various Pixel and Fitbit models, while the Pixel Tablet gained support for VPNs and new lock screen widgets.