Google plans to introduce real-world quantum computing applications within five years, according to its head of quantum research, Hartmut Neven. The company’s prediction challenges Nvidia CEO Jensen Huang‘s estimate that practical quantum computing remains at least 15 to 30 years away. Google has been developing quantum technology since 2012 and recently announced a breakthrough that could accelerate the field.
Potential applications for quantum computing include advancements in materials science, drug discovery, and energy solutions. Google has already demonstrated quantum processors capable of solving complex problems far beyond the reach of traditional computers. A recent study published in Nature highlights new progress in quantum simulation, bringing the company closer to commercial viability.
The timeline for practical quantum computing remains uncertain, with predictions varying widely among experts. Nvidia’s scepticism caused a sharp drop in quantum-related stocks, but Google remains optimistic about achieving its goal. Governments and businesses continue to monitor quantum developments closely due to their potential impact on cybersecurity, finance, and healthcare.
Google has introduced new versions of its Gemini AI models, including the budget-friendly “Flash-Lite,” to compete with lower-cost rivals such as China‘s DeepSeek. The updates include the public release of Gemini 2.0 Flash and the testing of a new ‘Pro’ model. Flash-Lite was developed following positive feedback on the previous Flash 1.5 version, with the goal of making AI more affordable.
Investor scrutiny has increased over the rising costs of AI model development. DeepSeek recently claimed to have spent under $6 million on training a model, significantly less than what US AI firms are believed to invest. The emergence of cheaper alternatives has influenced discussions at Alphabet, Microsoft, and Meta, with all three companies reaffirming their commitment to high AI investment.
Alphabet’s stock declined on Tuesday amid concerns over a planned increase in capital expenditure, which exceeded Wall Street expectations by 29%. Google’s pricing strategy for Gemini Flash-Lite sets its cost at $0.019 per million tokens, placing it between OpenAI’s cost-efficient model at $0.075 and DeepSeek’s current rate of $0.014, which is set to increase soon.
Google has removed a key passage from its AI principles that previously committed to steering clear of potentially harmful applications, including weapons. The now-missing section, titled ‘AI applications we will not pursue,’ explicitly stated that the company would not develop technologies likely to cause harm, as seen in archived versions of the page reviewed by Bloomberg.
The change has sparked concern among AI ethics experts. Margaret Mitchell, former co-lead of Google’s ethical AI team and now chief ethics scientist at Hugging Face, criticised the move. ‘Having that removed is erasing the work that so many people in the ethical AI space and the activist space as well had done at Google, and more problematically, it means Google will probably now work on deploying technology directly that can kill people,’ she said.
With ethics guardrails shifting, questions remain about how Google will navigate the evolving AI landscape—and whether its revised stance signals a broader industry trend toward prioritising market dominance over ethical considerations.
China’s antitrust regulator is reportedly preparing to investigate Apple’s App Store policies and fees, including its 30% commission on in-app purchases and restrictions on external payment services. The move follows recent measures targeting US businesses, including Google and fashion brand Calvin Klein, just as new US tariffs on Chinese goods emerged. Apple’s shares fell 2.6% in premarket trading following the news.
The investigation, led by the State Administration for Market Regulation, comes after ongoing discussions between Chinese regulators, Apple executives, and app developers over the past year. While neither Apple nor the Chinese antitrust regulator has commented on the matter, the move is seen as part of broader scrutiny of US companies operating in China.
In a separate development, Google was also accused of violating China’s anti-monopoly laws, with experts speculating the probe could be linked to Google’s Android operating system and its influence over Chinese mobile manufacturers. Additionally, China’s Commerce Ministry added PVH Corp, the owner of brands like Calvin Klein, to its “unreliable entity” list.
Google is set to transform its Search engine into a more advanced AI-driven assistant, CEO Sundar Pichai revealed during an earnings call. The company’s ongoing AI evolution began with controversial “AI overviews” and is now expanding to include new capabilities developed by its research division, DeepMind. Google’s goal is to allow Search to browse the web, analyse information, and deliver direct answers, reducing reliance on traditional search results.
Among the upcoming innovations is Project Astra, a multimodal AI system capable of interpreting live video and responding to real-time questions. Another key development is Gemini Deep Research, an AI agent designed to generate in-depth reports, effectively automating research tasks that users previously conducted themselves. Additionally, Project Mariner could enable AI to interact with websites on behalf of users, potentially reshaping how people navigate the internet.
The shift towards AI-powered Search has sparked debate, particularly among businesses that depend on Google’s traffic and advertising. Google’s first attempt at AI integration resulted in embarrassing errors, such as incorrect and bizarre search responses. Despite initial setbacks, the company is pushing ahead, believing AI-enhanced Search will redefine how people find and interact with information online.
Snap has introduced an AI-powered text-to-image model designed to run efficiently on mobile devices, generating high-resolution images in just 1.4 seconds on an iPhone 16 Pro Max. Unlike cloud-based systems, this model operates entirely on the device, reducing costs while maintaining impressive visual quality. The company plans to integrate it into Snapchat’s AI Snaps and Bitmoji features in the coming months.
By developing its own AI model, Snap aims to provide users with more advanced creative tools while lowering operational expenses. The move aligns with a broader trend among tech companies investing heavily in AI to enhance their platforms. Previously, Snap relied on external providers like OpenAI and Google, but its in-house model gives it more control over future innovations.
Snapchat’s AI investment highlights the growing competition in mobile AI technology, with major players racing to deliver faster and more efficient features. As the company prepares to roll out these new capabilities, it remains to be seen how they will shape user experiences and engagement on the platform.
China has introduced a series of measures targeting US businesses, including Google, farm equipment makers, and the owner of Calvin Klein, following the implementation of new US tariffs on Chinese goods. Among these measures, China launched an investigation into Google for potential violations of anti-monopoly laws, although no further details were provided. Despite its minimal presence in China, Google continues to collaborate with local advertisers.
China’s Ministry of Commerce also added US firms PVH Corp and Illumina to its ‘unreliable entity’ list, accusing them of actions that harmed Chinese companies. The companies could face significant sanctions, including trade freezes and restrictions on foreign staff. PVH has already been under scrutiny for its ties to the Xinjiang region.
As part of a broader response, China imposed 10% tariffs on US farm equipment, which could impact companies like Caterpillar, Deere & Co., and AGCO. Tesla’s Cybertruck, a model that has yet to receive regulatory approval, could also be affected. These new tariffs, set to take effect on February 10, signal an escalation in trade tensions between China and the US, extending beyond the tech sector.
These moves mark a significant increase in trade restrictions, building on previous actions taken under former US President Biden’s administration. Analysts suggest that these measures may be used as leverage, with the potential for de-escalation if either side chooses to back down.
Alphabet is set to face investor scrutiny over its heavy spending on AI as it prepares to report earnings. Slower revenue growth in advertising and cloud services has raised concerns, especially as competition in AI intensifies. Chinese startup DeepSeek’s launch of low-cost AI models has fuelled worries about an industry price war. Alphabet’s capital expenditure, estimated at $50 billion for last year, is expected to rise further in 2025 to support AI-driven search features and cloud expansion.
Google Cloud’s growth is forecast to slow in the fourth quarter despite high expectations. Analysts suggest that while heavy investment continues, efficiency gains have helped maintain profits. The company’s search and advertising business remains strong, with an expected 11.2% increase in revenue, though this marks a slight slowdown from the previous quarter. Competition from Amazon and TikTok continues to challenge Alphabet’s dominance in search advertising.
Political advertising linked to the US presidential election may have boosted Google’s revenue, following a similar trend at Meta. However, Meta’s cautious outlook for the first quarter has raised concerns about broader ad market trends amid economic uncertainty. Alphabet’s shares have climbed 7% this year after a strong rally in 2023, largely driven by confidence in its AI strategy.
Investors will closely watch whether Alphabet faces the same cloud business challenges as Microsoft, whose Azure growth slowed due to a shift in AI priorities. Google Cloud revenue is expected to rise by 32% in the fourth quarter, slightly down from the 35% growth seen previously but still outpacing Microsoft and Amazon. Maintaining momentum in AI while balancing cloud growth remains a key challenge for Alphabet.
Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.
The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.
A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.
The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.
Google identified more than 57 cyber threat actors linked to China, Iran, North Korea, and Russia leveraging the company’s AI technology to enhance their cyber and information warfare efforts. According to a new report by Google’s Threat Intelligence Group (GTIG), the state-sponsored hacking groups, known as Advanced Persistent Threats (APTs), primarily use AI for tasks such as researching vulnerabilities, writing malicious code, and creating targeted phishing campaigns.
The company says that Iranian APT actors, particularly APT42, were identified as the most frequent users of Google’s AI tool, Gemini. They used it for reconnaissance on cybersecurity experts and organizations, and phishing operations.
Beyond APT groups, underground cybercriminal forums have begun advertising illicit AI models, such as WormGPT, WolfGPT, FraudGPT, and GhostGPT—AI systems designed to bypass ethical safeguards and facilitate phishing, fraud, and cyberattacks.
In the report, Google stated that the company has implemented countermeasures to prevent abuse of its AI system and has called for stronger collaboration between government and private industry to bolster cybersecurity defenses.
